Once the new year begins people often ask, “When is tax season and how should I prepare?” Tax season typically refers to the period in which individuals and businesses file their income tax returns for the previous year. Tax season in the United States typically begins in January and ends in mid-April.
In 2023 the IRS will accept tax returns January 23 through April 18. It’s important to note that tax season may differ depending on where you live. Be sure to file your tax return on time and pay any taxes owed by April 18 to avoid penalties and interest charges.
Now that you know when tax season is, consider what you need to know about filing taxes. To help eliminate the stress that comes with taxes, use the preparing for taxes checklist found in this article.
What to know about filing taxes
Filing taxes is an important responsibility that individuals and businesses must fulfill each year. The following explains what to know about filing your taxes.
Who needs to file
Individuals who earn an income in the United States are required to file a federal tax return. The threshold for filing depends on several factors such as age, filing state and income level. You may also need to file state and local tax returns depending on where you live.
Tax forms
The IRS provides a range of tax forms for individuals and business use. The most common for individuals is the Form 1040. Depending on your situation, you may need to file additional forms such as the Schedule A for itemized deductions, the Schedule C for self-employment income or the Schedule D for capital gains and loss.
Payments
If you owe taxes, you’ll need to make a payment by the deadline. You can make a payment online, by phone or by mail. If you can’t afford to pay the full amount owed, you may be able to set up a payment plan with the IRS.
Deductions and credits
There are a variety of deductions and credits to help lower your tax bill. Read the preparing