Relief Check Live Updates: Tax Season 2023, Debt Ceiling, Social Security Payments, Real Estate Market...

Relief Check Live Updates: Tax Season 2023, Debt Ceiling, Social Security Payments, Real Estate Market…

Does tax season affect the stock market?

The Internal Revenue Service, tax planners, and taxpayers are preparing for the start of the 2023 tax season that begins on January 23.. Taxpayers will need to file their documentation and pay any taxes owed by April 18. Tax season not only prompts people to get their financial documents in order, it also causes gyrations in the stock markets.

As tax day approaches, a common phenomenon occurs with the stock price falling towards the end of tax season. Although the immersion does not usually last that longMarkets usually rally around mid-April, the reason, or theory, behind this is pretty straightforward.

Another anomaly has been seen at the end and beginning of the year. Known as the ‘January Effect’, the value of shares falls in December and then recovers in January. However, this has all but disappeared over time, some even doubt it exists, and again the explanation is partly tied to taxes.

​​​​​​​To learn more about how your wallet could be fair this tax season, check out our full coverage.

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