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 Texas, as in all states, a tax return is a document filed with a tax authority that reports income, deductions, and exemptions. For federal taxes, individuals and entities report this information to the Internal Revenue Service (IRS) using forms such as the 1040 for individuals, 1120 for corporations, or other relevant forms depending on the taxpayer's circumstances. Texas, however, does not impose a state income tax on individuals, so residents are not required to file a state tax return for personal income. Businesses in Texas may be subject to other types of state taxes, such as franchise tax, and must file the appropriate state forms to report their earnings and calculate their tax liability. The Texas Comptroller of Public Accounts is the state authority responsible for tax collection and enforcement.
