Tax Season

AAA

DEFINITION of 'Tax Season'

The time period between January 1 and April 15 of each year in which individuals traditionally prepare the previous year's financial statements and reports. In the United States, individuals must file their annual tax return by April 15 of the year following the reportable earnings.


During tax season, businesses must furnish employees, contract laborers and others, such as royalty earners, with tax documents specifying data required to complete individuals' tax returns. People who are required to file a tax return must do so by April 15 or request an extension.

INVESTOPEDIA EXPLAINS 'Tax Season'

Tax season is the busy season for many tax preparers and accounting professionals. This three and a half month period is the time that people collect the necessary paperwork, including wage and earnings statements (such as 1099s or W-2s) and assemble tax returns.


While some individuals calculate their own tax returns, many rely on the expertise of tax preparers and accounting professionals to be certain the paperwork is filed correctly and to improve the financial outcome of the tax return. Individuals must file federal, state and, in some cases, local tax returns.

VIDEO

RELATED TERMS
  1. Internal Revenue Code - IRC

    The comprehensive set of tax laws created by the Internat Revenue ...
  2. Taxes

    An involuntary fee levied on corporations or individuals that ...
  3. Federal Tax Brackets

    Income tax groupings specified by the Internal Revenue Service ...
  4. Income Tax

    A tax that governments impose on financial income generated by ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Buffett Rule

    A tax rule proposed in 2011, by President Barack Obama, stating ...
Related Articles
  1. Next Season, File Taxes On Your Own
    Taxes

    Next Season, File Taxes On Your Own

  2. How To Calculate The Tax You Owe
    Taxes

    How To Calculate The Tax You Owe

  3. 10 Money-Saving Year-End Tax Tips
    Taxes

    10 Money-Saving Year-End Tax Tips

  4. 10 Most Overlooked Tax Deductions
    Taxes

    10 Most Overlooked Tax Deductions

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center