Get Ready for Tax Season 2023: Key Dates and Filing Deadlines to Know
Tax season can be a stressful time of year for many individuals and businesses alike. It’s important to stay organized and keep track of important dates and deadlines to ensure that your tax return is filed accurately and on time. In this article, we will provide you with all the key dates and filing deadlines you need to know for tax season 2023. Whether you’re an individual taxpayer or a business owner, this information will help you prepare and file your taxes with confidence. So, let’s get ready for tax season 2023!
Understanding Tax Season 2023
What is Tax Season?
The term “tax season” pertains to the duration during which individuals and companies are mandated to submit their tax returns to the government. During tax season, taxpayers report their income, deductions, and credits to calculate their tax liability or refund. Tax season typically runs from January to April, although the exact dates may vary from year to year.
When Does Tax Season Start and End?
Tax season for 2023 officially begins on January 1, 2023, which marks the start of the tax year. The Internal Revenue Service (IRS) typically begins accepting tax returns in late January, and taxpayers have until April 18, 2023, to file their returns. However, taxpayers who need more time can request a six-month extension, which extends the deadline to October 16, 2023.
Why is it Important to File Your Taxes on Time?
Filing your taxes on time is important for several reasons. First and foremost, it helps you avoid penalties and interest charges, which can add up quickly if you owe taxes. Filing on time also ensures that you receive any refund you may be owed promptly. Additionally, if you file on time, you have more time to resolve any issues or errors that may arise with your return.
What are the Consequences of Filing Late?
If you fail to file your tax return or pay your taxes on time, you may be subject to penalties and interest charges. The penalty for late filing is generally 5% of the unpaid tax per month, up to a maximum of 25%. If you fail to pay your taxes on time, you may be subject to a penalty of 0.5% of the unpaid tax per month, up to a maximum of 25%. Interest is levied on any outstanding taxes starting from the deadline for filing the return until the day the payment is made. In addition to these penalties, filing late can also delay any refund you may be owed.
Key Dates to Remember for Tax Season 2023
January 1, 2023 – Start of Tax Year
January 1, 2023, marks the beginning of the tax year for tax season 2023. This is the date when taxpayers should start gathering their tax-related documents and information to prepare their tax returns.
January 28, 2023 – IRS Begins Processing Returns
The Internal Revenue Service (IRS) typically begins processing tax returns in late January. Taxpayers can submit their returns electronically or by mail starting on this date. Electronic filing is generally faster and more secure than paper filing.
April 18, 2023 – Tax Filing Deadline
April 18, 2023, is the tax filing deadline for tax season 2023. This is the deadline for taxpayers to file their tax returns or request an extension. Taxpayers who owe taxes must also make a payment by this date to avoid penalties and interest charges.
October 16, 2023 – Extended Tax Filing Deadline
Taxpayers who need more time to file their tax returns can request a six-month extension, which extends the deadline to October 16, 2023. However, taxpayers who owe taxes must still make a payment by the original filing deadline (April 18, 2023) to avoid penalties and interest charges.
Other Important Dates to Know
In addition to the key dates listed above, taxpayers should also be aware of other important dates, such as the deadline for making contributions to retirement accounts (usually April 15), the deadline for making estimated tax payments (usually April 15, June 15, September 15, and January 15), and the deadline for filing certain business tax returns (which may vary depending on the type of business).
Filing Your Taxes for Tax Season 2023
How to Prepare Your Tax Return
Preparing your tax return involves gathering all the necessary information and documentation, such as W-2 forms, 1099 forms, and receipts for deductions and credits. You can then use tax software or work with a tax professional to fill out your tax return accurately and efficiently.
Choosing the Right Tax Form
There are several different tax forms to choose from, depending on your income level, filing status, and other factors. The most common form is Form 1040, but there are also shorter, simpler forms for those who meet certain criteria, such as Form 1040EZ and Form 1040A.
Understanding Tax Deductions and Credits
Tax deductions and credits can help reduce your tax liability or increase your refund. Common deductions include mortgage interest, charitable contributions, and state and local taxes. Common credits include the earned income tax credit and the child tax credit. It’s important to understand which deductions and credits you qualify for and to take full advantage of them.
Common Mistakes to Avoid When Filing Your Taxes
There are several common mistakes that taxpayers make when filing their taxes, such as forgetting to sign their returns, making errors in calculations, and failing to report all income. These mistakes can lead to delays in processing your return, penalties, and even audits. It’s important to double-check your return for accuracy and completeness before submitting it.
It’s important to note that while tax preparation fees were previously deductible as miscellaneous expenses subject to a 2% limit, this deduction was suspended for tax years 2018 through 2025 under the Tax Cuts and Jobs Act, so taxpayers cannot deduct these fees on their tax returns for tax season 2023.
Getting Help with Your Tax Return
If you’re unsure how to prepare your tax return or have complex tax issues, it may be helpful to work with a tax professional. Tax professionals can provide guidance on tax law, help you find deductions and credits you may have missed, and even represent you in case of an audit. You can also get help from the IRS by calling their toll-free number or visiting a local taxpayer assistance center.