Tax Return
An annual filing that reports your income and deductions to calculate the tax you owe or are refunded.
A tax return is the form you submit to the tax authority declaring your income, deductions, and credits for the year. It reconciles what you actually owe against what was already withheld, resulting in either a refund or an additional payment. Employees with simple situations may have it handled by their employer, while the self-employed and those with extra income usually file themselves. Claiming every deduction and credit you qualify for is where a return saves you money. Keeping organised records throughout the year makes filing faster and more accurate.
Example
Your return shows $7,000 of tax due but $7,500 was withheld from your salary, so you receive a $500 refund.
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Related terms
Tax Base
The amount of income or value on which tax is calculated, after deductions but before credits.
Tax Deduction
An expense subtracted from your taxable income, lowering the amount of income that gets taxed.
Tax Credit / Allowance
An amount subtracted directly from the tax you owe, reducing your bill euro for euro.
Gross vs Net Income
Gross income is your total earnings before deductions; net income is what reaches your account after taxes and contributions.
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VAT (Value Added Tax)
A consumption tax added to the price of most goods and services, ultimately paid by the end consumer.
Insurance Deductible (Excess)
The amount you pay out of pocket on a claim before your insurance starts covering the rest.
Insurance Premium
The recurring amount you pay, monthly or yearly, to keep an insurance policy active.
Insurance Claim
A formal request to your insurer to pay for a covered loss or event.
Liability Insurance
Coverage that pays for harm or damage you cause to other people or their property.