Tax Year

Category: tax

The 12-month period for which an individual or business reports income and pays taxes.

For most people, the tax year is the calendar year (January 1st to December 31st). Some businesses use a "fiscal year" that ends on a different date to better match their operational cycles, which changes their filing deadlines and planning windows.

Common Examples

• The business opted for a fiscal tax year ending in June to align its reporting with the seasonal nature of the commercial construction industry.
• All income earned within the designated tax year must be captured and reported on the corresponding federal return, regardless of payment date.