What Is Tax Season?
Tax season is the time of year when individual taxpayers traditionally prepare their financial accounts and reports for the previous year and file their tax returns, which is typically between January 1 and April 15 of each year. Individuals in the U.S. normally have until April 15 of the year after any reportable earnings to file their yearly tax return. Late penalties and interest fees apply to tax returns filed beyond the end of the filing season.
The U.S. tax season will start on Monday, January 23, 2023, when the Internal Revenue Service (IRS) starts collecting and processing returns for the 2022 tax year. It expires on April 18, 2023.
- Tax season is the time of year when people and businesses prepare and submit their income taxes.
- While the IRS will start taking returns for the 2022 tax year on January 23, the traditional tax season in the US runs from January 1 through the April 15 filing deadline.
- Employers, financial custodians, and other organizations that produce revenue for people must supply records and statements throughout tax season in order for taxes to be prepared and filed on time.
Recognizing Tax Season
Tax season is the time frame in which all income taxes up to the due date must be filed. The deadline is usually April 15 each year, but if that day falls on a weekend or a holiday, it is moved to the following business day. Since Emancipation Day falls on Monday, April 17, 2023, the next business day, April 15, is a Saturday, giving taxpayers until Tuesday, April 18, 2023, to file their 2022 tax returns and pay any taxes owed. After this date, late fees apply to tax returns that are filed.
During tax season, companies are obligated to provide tax paperwork containing the information needed to finish a person’s tax returns to employees, contract workers, and other individuals, such as royalty earners. Generally, individuals who are obligated to submit tax returns must do so by April 15 or seek an extension.
For many accountants and tax preparers, tax season is a busy time of year. The three and a half months at the start of the year are when the required paperwork, such as wage and earnings statements (such as 1099s or W-2s), is gathered to put together tax returns.
While some people do their own tax calculations, many depend on the knowledge of tax preparers and accounting experts to ensure the paperwork is completed correctly and to enhance the financial outcome of the tax return. Via the IRS Free File program, taxpayers with incomes of $73,000 or less (in 2022) are entitled to free tax filing. Each person is required to file federal, state, and, in some circumstances, local tax returns.
According to the IRS, a taxpayer will be required to pay federal tax for the tax year 2022 if their gross income (all sources of income combined) exceeds $12,950. Any net self-employment income of $400 or more is considered independent contractor compensation, or “non-employee compensation,” and as such, independent contractors are required to file a report and pay self-employment taxes on these earnings.
Employers have until January 31 to submit paperwork and provide W-2s to workers. As in the 2022 tax year, businesses that use independent contractors must send these non-employees Form 1099-NEC. This document superseded the 1099-MISC, which is still required for payments made for, among other things, rent, rewards, and medical expenses.
Why Early Filing May Be a Good Idea
Even though many taxpayers file their tax returns on or before April 15 each year, there is no need to wait until the last minute. A few factors can, in fact, support the filing of an early tax return.
The IRS started receiving and processing tax returns for the 2022 tax year on Monday, January 23, 2023. You should start your planning as soon as you can even if you don’t file early.
Beginning your filing procedure early gives you the time you need to gather the proof you’ll need to support each deduction you’re claiming. By not worrying about numbers and receipts in the middle of the night, you will spare yourself the headache. Your accountant will likely be able to begin working on your accounts right away because of their more accommodating schedule. Also, you will stop potential identity thieves in their tracks by filing early.
When Can You Begin Filing Your 2022 Taxes?
Beginning on January 23, 2023, tax returns for the tax year 2022 can be filed. On Tuesday, April 18, 2023, taxes are due.
The 2022 tax filing deadline has been extended.
Due to their proximity to catastrophe zones, Georgia, Alabama, and California have delayed their tax filing deadlines for 2022. It was originally extended through May 15, 2023, but it has now been extended through October 16, 2023.
When Should I Expect My 2022 Tax Refund?
Most tax refunds, according to the IRS, are given out within 21 days of filing.
Tax season is when people and businesses get their paperwork ready to file their returns, which are typically due on April 15. Most people and businesses begin receiving the paperwork they need to complete their tax returns in January. As a result, the traditional definition of tax season is from January 1 to April 15. Right now, people either do their taxes themselves, utilize tax preparation software, or employ tax experts. Regardless of the technique used, it’s critical to submit taxes on time in order to avoid fines, fees, and interest charges.
NOW is the time to begin your tax planning for 2023.