Tax Organizer 2023: When You Can Start Filing Taxes in 2023

by David Adam My name is David Adam , and I'm a skilled accounta

Tax Day, typically scheduled for April 15 each year, remains unchanged unless it coincides with a weekend or holiday. The impact of the 2021 pandemic led to the IRS, known as Internal Revenue Service and Treasury Department (extending the deadline to May 17). However, this extension scenario does not apply to the 2023 tax returns. For this current year, the deadline to submit your income tax return falls on Tuesday, April 18, with the option of requesting an extension until October 17.

Bear in mind that even if you opt for an extension, any owed taxes must still be paid by April 18, 2023, to prevent incurring penalties and interest charges. The IRS mandates that you estimate your tax liability for the tax year and settle it when applying for the extension or by the set deadline.

How to Identify Your Tax Dues

The deadline for filing your income tax return is linked to Tax Day on April 15th. If this date happens to coincide with a weekend or holiday, the deadline is shifted to the subsequent business day. The Tax Day deadline in 2023 has been extended due to April 15 falling on a Saturday.

For guidance on when to submit your tax return, you can refer to publications available on the IRS website. An example is Publication 509, which undergoes annual updates and encompasses the complete tax calendar for the year. Navigating IRS documents can sometimes seem overwhelming.

Does Federal and State Taxes Have the Exact Due Date?

Every state is tasked with establishing its tax filing deadline. Many states align their deadlines with the IRS guidelines to streamline the process. Consequently, their state filing deadline corresponds with the federal one. Nonetheless, you might reside in a state that either doesn't impose state income taxes or has decided upon an extended filing date. Thus, it's advisable to consult your state's taxation department to ascertain the specific 2023 filing deadline applicable to you. Importantly, no state enforces a filing deadline preceding the federal deadline of April 18th. You may get help from Tax Organizer 2023 to know the due dates of taxes.

The Estimate Taxes Dues Dates

Estimated taxes are periodic payments typically made quarterly by individuals such as small business owners, freelancers, and independent contractors. These payments are calculated based on the income earned within that specific timeframe. The IRS mandates that taxpayers cover at least 90% of their annual tax liability via deducting or tax payments during the year. Loss to encounter this condition can lead to penalties associated with the underpayment of estimated taxes.

The schedule for these estimated tax payments is as follows:

April 18 for income earned from January 1 to March 31
June 15 for income earned from April 1 to May 31
September 15 for income earned from June 1 to August 31
January 18 of the subsequent year for income earned from September 1 to December 31

These tax payments must be postmarked by the stipulated due date to prevent incurring penalties. Additionally, you have the choice to make your payment through the IRS Direct Pay website.

What You Might Deal If You Are Missing Due Tax Dates?

Adhering to the IRS tax deadline is the recommended course of action to avoid potential complications. An option to secure extra time is to obtain a complimentary extension until October 15. While this extension provides additional room to file, it's important to note that any taxes owed must still be settled by April 18. Remarkably, there is no charge if you incur no taxes, but the IRS keeps your return for a more extended period.

Penalties such as interest will be assessed if the projected tax payment is not made by the deadline. Late payment penalties initiate at 0.5% per month, capping 25% of the outstanding sum. Should you neglect to file for an extension, the penalty escalates to 5% per month, maintaining the 25% maximum penalty.

Moreover, you'll also be accountable for accrued interest on the outstanding balance. The IRS determines the interest rate by adding 3% to the federal short-term rate. For the current year, this rate stands at 7%.

Do You Need to File Tax Extension?

For those seeking an extension, the process entails completing IRS Form 4868. This form provides an automatic extension of six months for individuals filing a Form 1040, 1040NR, or 1040NR-EZ. It's worth noting that some individuals mistakenly request an extension due to an inability to make the tax payment. As previously discussed, this approach can result in penalties and interest charges. However, suppose you find yourself owing taxes and unable to pay the total upfront. In that case, the IRS offers diverse payment plans to mitigate penalties and interest on your tax liability.

Filing for a tax extension is advisable if you:

Have a tax refund due but require additional time to complete your return
Are you able to cover the estimated amount owed but need an extension to finalize your filing
Are navigating life events such as family bereavement or divorce necessitating more time to assemble the necessary documents for your return
Have been constrained by time and was unable to file during the tax season due to various commitments.

All You Know About Tax Extension

While the tax filing deadline predominantly falls on April 15, there are instances when the IRS may find it necessary to grant an extension. Such was the scenario for the 2020 federal tax year. In response to the COVID-19 pandemic, the agency extended the filing deadline for individuals until May 17, 2021.

Furthermore, an additional extension was provided for Texas, Oklahoma, and Louisiana residents due to the severe winter storms that struck those states in February 2021. For both individuals and corporations, the deadline to submit their 2020 tax returns was postponed to June 15, 2021.

Subsequently, spring storms inflicted considerable damage on Tennessee and specific areas of Alabama and Kentucky, resulting in further extensions. The IRS frequently extends filing deadlines for regions affected by disasters, a measure they have already taken in 2023.

What is Tax Season?

Tax season refers to the period, usually spanning from January 1 to April 15 every year, during which individual taxpayers traditionally compile financial statements and summaries from the preceding year and proceed to file their tax returns. In the United States, individuals are generally expected to complete their annual tax return by April 15 of the subsequent year, following any earnings that require reporting. Submitting tax returns after the conclusion of the tax season renders them liable to late penalty charges and interest fees.

On this day, the IRS will begin accepting and processing tax year 2022 returns. Taxpayers are advised to meet the deadline of April 18, 2023.

End Note!

Tax season encompasses the timeframe during which individuals and businesses organize their documentation for tax filing, with the typical deadline being April 15. In January, most individuals and companies begin to receive the necessary materials to complete their tax forms. Regardless of the chosen approach, ensuring that taxes are submitted by the due date is crucial to prevent the imposition of penalties, fees, and interest charges.