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 Tennessee, a tax return is a document filed with the federal Internal Revenue Service (IRS) and/or the Tennessee Department of Revenue, depending on the type of tax. For federal income taxes, all individuals and entities must file a tax return if they meet certain income thresholds, reporting their income, deductions, and credits to calculate their tax liability. Tennessee, however, does not levy a personal income tax on wages. Instead, it imposes the Hall income tax on certain types of interest and dividend income, but this tax is being phased out and is set to be completely eliminated by January 1, 2022. For businesses, Tennessee requires tax returns for business tax, franchise and excise taxes, and sales and use taxes, among others. The specific forms and filing requirements vary depending on the type of tax and the specifics of the taxpayer's situation.