Tax Return in the USA: How the American Income Tax Works

Understanding the United States tax system is one of the most important tasks for anyone living and working in the country. The Tax Return, or American income tax return, is an annual obligation that affects residents, non-residents, and even American citizens living abroad. Many people confuse the Tax Return with the refund itself, but they are different things: the Tax Return is the statement you send to the government, and the refund is the money that may be returned if you overpaid your taxes.

For recent immigrants, the process can seem intimidating, especially because it differs significantly from the Brazilian model. In the United States, the responsibility to calculate and file your taxes falls on the taxpayer, not the government. This means that organization, knowledge of deadlines, and understanding available deductions are essential to avoid penalties and maximize possible refunds.

This guide explains how the system works, which documents are required, the updated deadlines for 2026, and the best ways to file.

What is the Tax Return

The Tax Return is the annual income tax statement sent to the Internal Revenue Service (IRS), the American equivalent of the Brazilian Federal Revenue Service. Through this statement, the taxpayer reports all their income, deductions, and tax credits for the previous fiscal year. In the United States, the fiscal year coincides with the calendar year, from January 1 to December 31.

Virtually everyone who earned taxable income in the United States during the fiscal year is required to file this statement. This includes American citizens, permanent residents (green card holders), work visa holders, and even non-residents with U.S.-source income. Even if you owe no tax at the end of the calculation, filing is still mandatory if your income exceeds the minimum limits set by the IRS.

How the refund works

The tax refund occurs when the taxpayer paid more tax throughout the year than was actually owed. The most common scenario is withholding at source (payroll withholding): your employer withholds taxes from each paycheck based on estimates, and at the end of the year the exact calculation may reveal that the amount withheld was higher than the tax due.

The IRS compares the total paid with the total owed, considering income, deductions, and tax credits. If the amount paid is higher, the difference is returned as a refund. The main factors influencing this calculation are:

• Total income: salary, investment income, self-employment, and other sources.
• Withholding at source: the amount withheld by the employer from each paycheck.
• Deductions: expenses that reduce taxable income, such as mortgage interest, retirement contributions (401k, IRA), and qualified medical expenses.
• Tax credits: direct reductions in the tax owed, such as the Child Tax Credit for dependents and education credits.

Required documents

Organizing documents throughout the fiscal year significantly simplifies the filing process. Essential documents include:

• W-2 Form: sent by the employer, details wages and taxes withheld. It must arrive by January 31 of the year following the fiscal year.
• 1099 Forms: report income from various sources such as self-employment (1099-NEC), bank interest (1099-INT), dividends (1099-DIV), and investments (1099-B).
• SSN or ITIN: the Social Security Number is the main identification number. Those without an SSN can apply for an Individual Taxpayer Identification Number (ITIN) using Form W-7 with the IRS. ITIN processing takes 7 to 11 weeks, depending on the time of year.
• Proof of deductions: receipts for medical expenses, student loan or mortgage interest, charitable donations, and retirement account contributions.
• Bank information: account number and routing number to receive the refund via direct deposit, which is the fastest method.

Deadlines for 2026

The deadline to file the Tax Return for the 2025 fiscal year is April 15, 2026. This date applies both to filing the return and to paying any tax owed. Late payment results in penalties and interest, even if the return is filed on time.

Those who need more time to prepare their return can request a six-month automatic extension using Form 4868, pushing the filing deadline to October 15, 2026. However, it is important to understand that the extension applies only to filing the return, not to payment. If you owe tax, the estimated amount must be paid by April 15 to avoid penalties.

Ways to file

There are three main ways to file the Tax Return in the United States:

Tax filing software such as TurboTax, H&R Block, and TaxAct guide the taxpayer step by step through the process. They are the most popular option, with free versions for simple returns and paid versions for more complex situations. Most offer e-filing (electronic filing), which speeds up refund processing.

Tax professionals, such as accountants (CPAs) and IRS Enrolled Agents, are recommended for more complex situations: income in multiple countries, self-employment, cryptocurrency investments, or first-time filing as an immigrant. The cost varies according to complexity, but the accuracy and peace of mind may be worth the investment.

Free IRS options: the IRS Free File program allows taxpayers with annual income below a certain limit to use tax filing software for free through the IRS website. In addition, the VITA (Volunteer Income Tax Assistance) program offers free in-person help for low- and moderate-income taxpayers at locations across the United States.

Tips to maximize your refund

Some strategies can increase your refund or reduce the tax owed:

• Contribute to retirement accounts: contributions to 401(k) or traditional IRA plans reduce taxable income and can result in larger refunds.
• Compare standard and itemized deductions: the IRS offers a standard deduction that varies according to filing status (single, married, head of household). If your itemized deductions exceed the standard, choose itemized to further reduce your tax.
• Don’t overlook tax credits: credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit can be worth thousands of dollars and are often missed by immigrants unfamiliar with the system.
• File electronically with direct deposit: the IRS processes over 80% of electronic refunds in less than 21 days. Paper returns can take four to eight weeks to generate a refund.
• Keep records year-round: saving receipts and proof throughout the year avoids the April rush and ensures no deduction is missed.

Understanding the American Tax Return and mastering its deadlines and mechanisms is not just a legal obligation, but a financial planning tool. For immigrants, the U.S. tax system can become an ally when well understood, allowing you to recover overpaid taxes and structure your financial life in your new country intelligently.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.