Lawmakers were trying to pass the changes to the CTC (and other proposed changes to research and development credits for businesses) before the tax season began. The IRS said this gave the agency tax season time to do more programming and testing of their systems following some end-of-2020 tax changes. The primary tax season usually takes place during the first few months of the calendar year.

You should ensure you have all of the right information to file a complete and accurate return and then submit the return early. You can usually start filing taxes for the preceding year by the end of January. For example, the IRS began accepting tax returns for tax year 2021 on Jan. 24, 2022. Don’t put off filing just because you can’t afford to pay the amount due on the day you need to file your tax return. The IRS starts charging penalties and interest on the day the return is due, no matter when you file.

Understanding Tax Season

Along with higher standard deduction amounts, the IRS has adjusted the income tax brackets from the 2022 tax year. The income tax bracket changes mean that, as with higher standard deductions, taxpayers can expect to see a slightly smaller tax bill. The tax year is the actual year where you earn money, pay income taxes, make charitable contributions, work side gigs, etc. The tax season is when you file, report and pay any taxes owed from the last year. Tax season officially started Jan. 29th, when the IRS began accepting tax returns and now there are about five weeks left until Tax Day, April 15.

With that in mind and tax season officially here, it’s good to know which bracket you fall into if you don’t already. The good news is tax brackets are more favorable this year than last due to inflation adjustments. To learn more about what that means for you and your tax bill, see Kiplinger’s guide to the federal tax brackets and income tax rates for 2023 and 2024. The IRS expects to receive more than 128.7 million individual tax returns by the federal deadline. For this tax season, parents with one child can only claim up to 35 percent of $3,000 in qualifying expenses, equivalent to a maximum amount of $1,050. Fewer filers will be able to qualify for these credits because the income qualification has reverted to what it was before the pandemic, Cagan said.

Tax Filing Season Begins January 24

If your business runs on a non-calendar tax year, your federal tax return is generally due by the 15th day of the third month following the end of the company’s fiscal year. If you need more time because you live in an area hit by a natural disaster, you might qualify for tax relief from the IRS. The IRS often postpones the tax filing deadline for taxpayers who live in or have a business within a federally declared disaster area. Generally, you have three years from the tax return due date to claim a tax refund.

• Learn how to open an account at an FDIC-insured bank or through the National Credit Union Locator Tool.
• In this case, though, you won’t have to make a payment immediately, but you will have to pay interest on your tax bill if you end up owing money.
• This is the date IRS systems officially begin accepting tax returns.
• The IRS urges people to have all the information they need before they file a tax return.
• That’s a $6,000 increase over last year’s income limit for the service.
• In 2020, all U.S. taxpayers got a three-month postponement for filing their 2019 taxes due to the onset of the COVID pandemic.