Tax Season

Loading the player...

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.

BREAKING DOWN '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.

RELATED TERMS
  1. Tax Year

    The period of time which is covered by a particular tax return. ...
  2. Tax Accounting

    Accounting methods that focus on taxes rather than the appearance ...
  3. Tax Rate

    The percentage at which an individual or corporation is taxed. ...
  4. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  5. Progressive Tax

    A tax that takes a larger percentage from the income of high-income ...
  6. Taxes

    An involuntary fee levied on corporations or individuals that ...
Related Articles
  1. Personal Finance

    Understanding Taxes

    Taxes are mandatory fees that individuals and corporations must pay to their governments.
  2. Personal Finance

    Does Online Tax Software Really Save You Money?

    Both online tax software and tax professionals have their own set of advantages, but which one is actually better for your bottom line?
  3. Personal Finance

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  4. Personal Finance

    Inaccurate Tax Return, Now What?

    If the IRS finds errors, it will cost you. Find out how to fix them, and how to prevent them in the first place.
  5. Personal Finance

    Use Tax Vs. Internet Sales Tax: How Are They Different?

    Learn about the differences between a use tax and an Internet sales tax. Find out about transactions in which the taxes apply, and to whom they apply.
  6. Personal Finance

    Next Season, File Taxes On Your Own

    Master these fundamentals and you'll be doing your own taxes with minimal stress.
  7. Personal Finance

    Choosing A Tax Preparer

    There are many people and companies that can file your taxes. Find out what each has to offer, and which is right for you.
  8. Investing

    Calculating Net of Tax

    Net of tax is a figure that has been adjusted for taxes.
  9. Personal Finance

    Why Do So Many People Fall Behind On Their Taxes?

    Despite the threat of owing thousands of dollars to possibly the most feared organization in the U.S., millions of Americans continue to fall behind on their taxes.
  10. Personal Finance

    The History Of Taxes In The U.S.

    The number of taxes that we now consider a given did not always exist. Find out how they arose.
RELATED FAQS
  1. What is the difference between income tax and capital gains tax?

  2. Do I need to file an income tax return every year?

    Understand if a person needs to file a tax return every year. Learn the benefits of filing a yearly income tax return even ... Read Answer >>
  3. What is the difference between federal and state withholding tax?

    Discover whether you can file your taxes by yourself. The three main options for tax preparation are a tax professional, ... Read Answer >>
  4. What are the differences between regressive, proportional and progressive taxes?

    Understand the differences between the most common tax systems including regressive taxes, proportional taxes and progressive ... Read Answer >>
  5. Does everyone have to file a federal tax return?

    This may come as a surprise to many individuals, but not everyone needs to file a federal tax return. According to the IRS, ... Read Answer >>
  6. What's the difference between the marginal tax rate system and a flat tax?

    Find out about the difference between marginal tax rates and flat taxes. Gain insights on both systems and the arguments ... Read Answer >>
Trading Center