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 Oregon, as in all states, a tax return is a document filed with the state's Department of Revenue (or equivalent taxing authority) and the Internal Revenue Service (IRS) for federal taxes. The purpose of the tax return is to report income, claim deductions, and identify exemptions for the purpose of calculating the taxpayer's liability for the tax year. For state taxes, Oregon residents use Form 40 for individuals or the appropriate form for their business structure if filing for a business entity. The state tax return will consider various sources of income, including wages, interest, dividends, and business earnings, and allow for deductions and credits specific to Oregon tax law. Federal tax returns are filed using forms such as the 1040 for individuals. Taxpayers must file their state and federal tax returns by the deadline each year, typically April 15th, unless an extension is granted. Failure to file or pay taxes can result in penalties and interest charges.