Federal Tax Return

A federal tax return is a form filed with the Internal Revenue Service (IRS) that reports an individual's or business's annual income, calculates tax liability, and determines whether taxes are owed or a refund is due. The most common individual form is IRS Form 1040, typically due on April 15th each year.

All U.S. citizens, permanent residents (green card holders), and individuals who meet the substantial presence test must file federal tax returns regardless of where their income was earned worldwide. Non-resident aliens must file if they have U.S.-source income. E-2 and EB-5 visa holders are generally considered U.S. tax residents and must report their global income.

International investors and immigrants should be aware of additional reporting requirements, including the Foreign Bank Account Report (FBAR) for foreign accounts exceeding $10,000 and Form 8938 for specified foreign financial assets. Penalties for non-compliance can be severe. Working with a CPA who understands international tax obligations is essential for visa holders and foreign nationals with U.S. income.