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 Rhode Island, as in all states, taxpayers are required to file a tax return 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 Rhode Island Division of Taxation. These tax returns report the taxpayer's income, deductions, and exemptions for the year, which are used to calculate the individual's or entity's income tax liability. The forms required for filing will vary depending on the taxpayer's circumstances, such as their employment status, income level, and eligible deductions. Rhode Island has its own set of tax forms and instructions that are specific to the state's tax laws and must be used when filing a state tax return. It is important for taxpayers to comply with both federal and state tax laws to avoid penalties and ensure accurate tax liability calculation.