Tax Season

A A A

DEFINITION

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 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 Service (IRS). ...
  2. Income Tax

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

    A United States government agency that is responsible for the collection and ...
  4. Taxes

    An involuntary fee levied on corporations or individuals that is enforced by ...
  5. Federal Tax Brackets

    Income tax groupings specified by the Internal Revenue Service (IRS) that determine ...
  6. Buffett Rule

    A tax rule proposed in 2011, by President Barack Obama, stating that individuals ...
  7. Benefits Received Rule

    1. A theory of income tax fairness that says people should pay taxes based on ...
  8. Generation-Skipping Transfer Tax ...

    A tax incurred when there is a transfer of property by gift or inheritance to ...
  9. Tax Code

    A federal government document, numbering tens of thousands of pages that details ...
  10. A-B Trust

    A trust created by a married couple with the objective of minimizing estate ...
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

  5. Can I use IRS Form 1040EZ to file my ...
    Taxes

    Can I use IRS Form 1040EZ to file my ...

  6. When do I need to file an IRS Schedule ...
    Taxes

    When do I need to file an IRS Schedule ...

  7. What is IRS Form W-2 used for?
    Taxes

    What is IRS Form W-2 used for?

  8. What are the advantages of paying your ...
    Taxes

    What are the advantages of paying your ...

  9. When would I need to use IRS Form 1 ...
    Taxes

    When would I need to use IRS Form 1 ...

  10. How do I determine what to pay in taxes ...
    Taxes

    How do I determine what to pay in taxes ...

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center