What Is Tax Season?
Tax season is the period of time, generally between Jan. 1 and April 15 of each year, when individual taxpayers prepare to report their taxable income to the federal government and, in most cases, to the government of the state in which they live.
Tax day in the U.S. is usually April 15. If that date falls on a weekend, the deadline is delayed until the following Monday. The deadline has sometimes been extended for some or all filers. The federal tax deadline for residents of 55 California counties was delayed until Nov. 16, 2023, due to a winter storm disaster declaration. In 2020, all U.S. taxpayers got a three-month postponement for filing their 2019 taxes due to the onset of the COVID pandemic.
Tax returns submitted after the deadline are subject to late penalty fees and interest charges. Extensions are available but they delay only the filing of the paperwork, not the payment of any taxes owed.
The next tax season begins on Jan. 1, 2024, with a filing deadline of Monday, April 15, 2024.
Key Takeaways
- For the current tax season, you should receive all the forms detailing your 2023 taxable income by the end of January 2024.
- Tax Day is Monday, April 15, 2024.
- By the end of January, employees should have received a W-2, Wage and Tax Statement recording their income and taxes paid during the previous year. Independent contractors should receive a Form 1099.
- If you have an account with a broker, you should receive a Form 1099-B.
- If you're on Social Security, the government will send you a Form 1099.
The IRS advises that all taxpayers keep copies of their prior-year tax returns for at least three years. In the event of an IRS audit, a taxpayer will be required to present the last three years of their documents. In extreme cases, such as suspicion of fraud, they will be expected to show seven years of documents.
Understanding Tax Season
Nobody expects you to spend three and a half months working on your taxes. Tax season is meant to provide time for employers, banks, financial services providers, and other entities to collate and distribute all of the information individual taxpayers need to file their returns.
The deadline for employers to send W-2s to their employees is January 31. Businesses that hire independent contractors must send these "nonemployees" Form1099-NEC. This form replaced 1099-MISC, which remains in effect for income received from rent and prizes, among other sources.
Independent contractors must file a return and pay self-employment taxes on any net earnings from self-employment of $400 or more.
Extensions
The IRS has occasionally extended the usual mid-April deadline for some or all taxpayers for a number of reasons. In 2021, residents and businesses in parts of Texas got a two-month extension on the tax deadline after severe snowstorms caused a federal disaster declaration to be declared.
The following spring storms caused enough damage in Tennessee and parts of Alabama and Kentucky to require further extensions to taxpayers in those areas.
Why Filing Early Can Make Sense
Many taxpayers wait to file until just before the deadline, but there is no need to put it off until the last minute. Indeed, filing an early tax return can make sense for a variety of reasons.
The best reason is that many taxpayers get money back from the government. If you file early, you'll get your money back early. Wait until the last minute and your return will wait for processing in a very large pile of returns.
The IRS began accepting and processing 2022 tax year returns on Monday, Jan. 23, 2023. Even if you don't file early, there are reasons to begin preparation as soon as you can.
Starting your filing process early gives you the time you need to collect the evidence needed to claim all of your deductions. You will avoid the headache of the middle of the night stress over figures and receipts. Your accountant will have a more flexible schedule and will probably be able to start working on your accounts immediately. Also, by filing early, you will short-circuit would-be identity thieves.
How Early in 2024 Can I Start Filing My Taxes?
The IRS begins accepting returns sometime in January every year, although no exact date has been specified at this writing. In any case, it will probably be late January before you receive all of the necessary forms from your employer and any other source of taxable income.
If you plan to file directly, you might consider creating an account at IRS.gov/account, where you'll find useful information about filing.
Do I Need to Pay to Get My Taxes Done?
The Internal Revenue Service says that almost all individual taxpayers, regardless of income, can now file their federal tax returns electronically free of charge using the IRS.gov website or the IRS2Go app.
Through an agreement with the IRS, taxpayers with income below certain levels can use any of a number of tax return software programs.
(State taxes are a separate matter, and state rules apply.)
When Should I Receive My Tax Refund in 2024?
The IRS states that most tax refunds are distributed within 21 calendar days of filing. You'll get your refund fastest if you file early and get ahead of the procrastinators.
The Bottom Line
Tax season is the period when individuals and businesses prepare their documents for filing taxes, which are generally due on or about April 15 of each year. Most individuals and businesses start receiving the needed documents to fill out their tax forms in January. Therefore, tax season is usually considered to be between Jan. 1 and April 15.
During this time, taxpayers gather together their paperwork and complete their tax forms, with the use of tax preparation software or directly through IRS.gov. Whichever method you choose, it's important to get the paperwork in by the deadline (along with the money due, if any) to avoid penalties and interest charges.
