What Is Tax Season?
Tax season is the time period, generally between January 1 and April 15 of each year, when taxpayers submit their tax returns. In the United States, individuals typically must file their annual tax return by April 15 of the year following the reportable earnings. Tax returns submitted after the end of tax season are subject to late penalty fees and interest charges.
There are many options for preparing your federal tax return. The first step is to determine if you are required to file taxes. Check the IRS Guidelines
Once you know you need to file a return you can choose:
- Prepare your own taxes: The IRS has free filing options at IRS help; Or you can purchase a software program like Turbo Tax or H&R Block
- Have your taxes prepared at VITA: Free Tax Preparation
- Pay someone to complete your taxes: Rates should be very reasonable for basic returns
The option you choose is best determined by the complexity of your taxes. You decide, but Free is a good option.
The IRS has gotten very efficient in processing tax returns so don’t get locked into paying to have them done so you can get a “Refund Loan”. The IRS doesn’t process your taxes any faster for companies who offer quick refunds. Just be sure you know all the fees before you sign. This has also been known to be a scam to get your personal information. If you opt for a Refund Loan please use a reputable company.
The other types of Taxes that you need to be aware of are:
- Property Taxes
- Sales Tax
- Self-Employment (if you receive a 1099 vs a W-2)
- Capital Gains
- Estate
Another type of tax you need to be aware of are payroll taxes. There is the W-4 that must be filled out to determine how much tax your employer will deduct from your paycheck.
Tips on completing a W-9 – Used by third parties to provide your information to report income from the following sources:
- Income paid to you.
- Real estate transactions.
- Mortgage interest you paid.
- Acquisition or abandonment of secured property.
- Cancellation of debt.
- Contributions you made to an IRA.
Each of these types of income transactions will be reported to you and to the IRS on a specific type of form, eg. 1099, 1098, etc.
