A tax return is a form on which a person or entity reports income, deductions, and exemptions to the federal or state taxing authority (IRS or state tax authority), and on which the person or entity’s income tax liability is calculated.
In New Jersey, as in all states, taxpayers are required to file a tax return annually with both the federal government and the state tax authority. The federal tax return is filed with the Internal Revenue Service (IRS) and the state tax return is filed with the New Jersey Division of Taxation. The tax return forms allow individuals and entities to report their income, claim deductions, and calculate their tax liability for the year. For individuals, the most common federal form is the 1040, and for New Jersey state taxes, the NJ-1040 form is used. Taxpayers must report various types of income, including wages, interest, dividends, and profits from business activities. They may also be eligible for certain deductions and credits that can reduce their taxable income or tax liability. The deadline for filing federal and state tax returns is typically April 15th of each year, unless an extension is filed. It's important for taxpayers to comply with these requirements to avoid penalties and interest for late or incorrect filings.