Tax season is the time of year when taxpayers prepare to meet critical tax deadlines, fulfill their obligations, remain compliant with the law, and avoid potential problems.
So, when is tax season? Continue reading to learn all about tax season, how to prepare effectively, and how to avoid costly mistakes and penalties while achieving the best possible results.
What is Tax Season?
Tax season is a period when individuals and businesses prepare and file their taxes before the tax authorities, such as the Internal Revenue Service (IRS), close the deadline. During this crucial tax season, taxpayers must get their tax filings right and ensure proper compliance with all tax regulations in the country.
Understanding Tax Season Basics
When is tax season? Individuals and businesses must report their prior year’s income every new year. This window of time, which typically runs for three months, is known as tax season. During this time, taxpayers gather documents, file tax returns, and address any payments owed or refunds due based on their calculated tax liability.
For some, tax filing is an easy process. However, for many, it can be a hassle and a stressful journey. The IRS offers tips on filing your taxes effectively, such as during tax season.
Why Tax Season Matters
Tax season matters because it gives you time and opportunity to maintain compliance with the country’s current tax regulations. By preparing well, filing taxes accurately, and adhering to deadlines, you can avoid penalties, interests, and other serious tax problems such as levies. This is why investing time, focus, and effort during tax season is crucial for a smooth, stress-free tax filing process.
When Does Tax Season Begin and End?
January: Tax season typically starts in late January. For example, in 2024, tax season started on January 29 and ran through April 15. As the window opens, the IRS starts processing returns and sending out W-2 and 1099 forms.
For those with an AGI (Adjusted Gross Income) of $84,000 or less in 2024, the IRS has begun accepting tax returns through the Free File system on January 10.
February-March: Most taxpayers begin preparing and filing their tax returns between February and March. This includes filling out forms and gathering receipts for deductions and credits.
April 15: The standard deadline for filing personal tax returns is April 15. If this date falls on a weekend or holiday, the deadline is moved to the following business day. You can request an extension if you can’t file by the deadline.
Extension Deadlines: If you file for an extension, the new filing deadline is usually October 15. However, this extension period is only for filing tax returns. It doesn’t apply to paying your taxes. Therefore, penalties may apply if you fail to pay taxes by the deadline.
How to Prepare for Tax Season
Organize Your Tax Documents
The most important step during tax season is to be well-prepared. This entails having all necessary and correct documents and keeping them well organized. These documents can include income forms, records of expenses, investment information, and other papers to support credits or deductions.
Review Changes in Tax Laws for 2025
Tax laws frequently change. As a result, staying current with the changes is critical for ensuring regulatory compliance. Failure to understand new updates will result in incorrect filing and numerous tax problems. You can get the most recent update from authorized sources or consult a tax attorney.
Determine Filing Status and Tax Liabilities
The amount of taxes you pay is determined by your tax bracket. And this depends on your filing status (single, married, head of household, etc.). Use the tax bracket to estimate your tax liability and calculate whether you will owe money or receive a refund.
Consider Your Refund or Payment Plan
If you expect to receive a refund, consider how you intend to spend the money. For example, you can save, invest, or use it to pay off debt. If you owe money, choose the best payment plan for your situation to make paying it off easier and avoid stress and the escalation of the problem.
Common Tax Filing Mistakes to Avoid
Incorrect Information on Tax Forms
Incorrect information, such as a wrong social security number or filing status, can cause delays and get you in trouble with the authorities. Be thorough and double-check everything before filing your tax returns.
Missing Deductions or Credits
Missing deductions and credits can lead to higher tax liabilities. In contrast, taking advantage of eligible deductions allows you to save money. Ensure you understand these deductions and which ones are eligible for you. Charitable donations, education credits, and energy-efficient improvements are among the most frequently overlooked items.
Filing Late or Not Filing at All
Late or non-filing can result in serious tax issues. Taxpayers who don’t follow the rules risk paying large fines and facing other legal consequences. Make sure you meet all the deadlines, and if you can’t, request an extension and learn about your options.
Should You Hire a Tax Professional or File Yourself?
While you can complete all of the steps for gathering documents and filing tax returns yourself, hiring a tax attorney has many advantages.
Having professional assistance to help you prepare and file for tax season will provide you with extra eyes to detect errors or incompletions, someone with extensive knowledge to guide you through the entire tax filing process, and help you figure out deductions and credits, allowing you to save more money.
This is exactly what our team at Greenberg Law Group, P.A. sets out to do. With our assistance, you won’t have to worry about mistakes or missed opportunities. We have the knowledge and experience to make the best of any tax situation, ensuring our clients get the best possible outcome.
If you need assistance with tax preparation and filing during this critical tax season, do not hesitate to contact Greenberg Law Group, P.A. We understand the complexities of tax regulations and have the knowledge and experience to make the tax filing process easier and avoid tax issues.
