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Tax Season 2023: What you need to know
Following extreme December and January winter storms, California has extended its tax filing deadline to October 16, 2023 for many counties including Santa Barbara, San Luis Obispo and Ventura to align with the IRS.
For more information on the counties affected, please visit this link.
Though the timeline for 2023 has changed due to weather conditions, it is important to expect and understand the yearly tax season timeline for future years.
Tax season is the period within which all individuals must prepare financial statements and reports from the previous year as well as submit their tax returns. Typically falling between January 1 and April 15 (unless there is a holiday or in this year’s case, the IRS provides an extended tax filing deadline), people must take steps throughout this period to ensure the completeness, accuracy, and punctuality of their files.
In January, you'll get a tax package from the IRS and start receiving the documents needed to complete your return. You should get a W-2 wage statement from your employer and Form 1099s from each financial institution that paid you interest, brokerage firms where you have earnings or losses, and corporations and mutual funds in which you own shares. As you get these documents, it's smart to file them in a place where you can find them easily.
As the tax deadline approaches, you can use the information from your inventory to do some initial tax calculations. That will let you predict whether you're going to get a refund or will owe money. And remember that the earlier you file your return, the sooner you receive a refund, if you're owed one.
In a normal filling year, April 15 is also your last opportunity to contribute to your Individual Retirement Account (IRA) for the previous year. After that, the contributions you make will count toward the next year. Contributions to Simplified Employee Pensions (SEPs) and Keogh plans are also due by April 15, unless you have an approved filing extension.
Reduce the tax you must pay for next year by planning in advance! By keeping an eye on the tax consequences for your everyday financial decisions, you can lower your tax bill. Visit our blogs on “Tax Planning” and “Paying Taxes” to learn more about ways to prepare for future tax seasons such as retirement account contributions, investment planning, flexible spending accounts, using your money in a charitable way, setting long term tax goals, and estimating your tax bill.
Check out other ARB blogs about tax season for helpful tips and information: