What You Need to Know About the Tax Year in the United States

Understanding the Tax Year

Let’s first look at what a tax year is before we tackle the steps and requirements. This is a one-year duration from the 12 months the IRS assigns for the receipt of income for determining tax liabilities, earning timelines, and taxing periods.

Defining Tax Year

Tax year designates the time interval within the year allotted for capturing receipts and the corresponding expenditures. This interval can be:

• A full calendar year, running from January 1 to December 31, which is called the calendar year.
• A fiscal year that runs up through the last day of any month except December.

Calendar Year vs. Fiscal Year

In most cases, individuals operate on the calendar year while businesses may choose a fiscal year depending on the nature of their business activities. Once established for the reporting period, the IRS expects you to maintain this for general use unless permission is granted to switch to an alternative period.

Standard Calendar Tax Year: Start and End Dates

All the Dates: January 1st to December 31st

The calendar-based fiscal/financial year starts from January and ends on the 31st of December, known as the Tax Year. This is used by the rest of the United States. The standard period for reporting includes:

• Employment earnings
• Self-employment income
• Other investment income

Why to Call It Tax Year or Justify for Defaulting to the Year?

The calendar simplifies filing multiple one-year tax returns within the year. A pleasant surprise considering it falls into the default tax framework for single-owner feeder entities to skip entity-level governance. This makes things easy and eliminates pedantic administrative burden or adds avoidable complexity.

Fiscal Year Summary: Another Alternative Tax Period

What is a Fiscal Year?

A fiscal year is defined as any consecutive 12-month period which does not end in the month of December. For example, a fiscal year may be:

• June 30 to July 1
• September 30 to October 1

How a Business Selects a Fiscal Year

A business may opt to use a fiscal year if any of the following is true:

• Their income is seasonal
• They operate in an industry that uses a non-calendar schedule

Examples of Fiscal Years

Most retailers will include holiday revenue in account and end their accounting period at January 31.

IRS Tax Deadlines for Individuals

Form 1040 Filing Deadline

For taxpayers who follow the calendar year, April 15 is the deadline for submitting Form 1040 to the IRS. The due date is also extended to the next working day if the 15th day of the month is a weekend or holiday.

Other Deadlines and Rules for Tax Extensions

The deadline can also be extended by completing the Form 4868 application for extension. An extension of 6 months is added, thus making the new deadline October 15. It should be noted that this is upon changing the payment schedule and not the payment itself.

Tax Deadlines for Businesses Set by the IRS

Sole Proprietorships & Partnerships

• Sole Proprietors: Submit Schedule C alongside Form 1040 by April 15
• Partnerships: Submit Form 1065 by March 15

Corporations & S Corporations

• C Corporations: Submit Form 1120 by the 15th day of the 4th month following year end
• S Corporations: Submit Form 1120S by March 15

How to Decide the Type of Your Tax Year

Choosing Between Calendar and Fiscal Year

The individual by default uses calendar years. Businesses join a specific calendar year as their fiscal year by adopting it via IRS Form 1128.

IRS Form 1128: Application to Adopt or Change Tax Year

IRS-granted permission by Form 1128 with justification is needed to change or adopt a business’s fiscal year.

Significance of Start and End Dates of Tax Year

Impact on Tax Planning and Steps Taken to Save on Taxes

The boundaries concerning tax dates determine:

• When income gets recognized
• Deduction scheduling
• Capital gains or losses

Tips During Year End to Reduce Taxes

Suggestions at year-end comprise:

• Having maxed out retirement accounts
• Making charitable donations
• Prepayment of deductible expenses

Are State and Federal Tax Years Always the Same?

They are; however, some states allow for or even necessitate different year endpoints for corporations or trusts.

Variations in Tax Year Dates That Are Specific to States

General states’ department of revenue has rules that are unique to your state.

For Self-Employed Individuals like Freelancers

Recording Income and Expenses

Freelancers range their work along the calendar year unless otherwise requested to use a different reporting system by declaring it through Schedule C.

Payment of Taxes

A self-employed individual is expected to pay taxes in advance on the set dates of the given year calendar. Advance taxation is paid within specified dates of work quarters and on the following dates:

• April 15
• June 15
• September 15
• January 15 (the following year)

For Corporations and LLCs

Dates of Submitting Corporate Tax

• C-Corps should file 1120 on the 15th day of the 4th month post the financial year ends
• S-Corps should file 1120S form before March 15

For Corporations Set FY

If some years align with their quarters, corporations have the freedom to set a suggested date for their fiscal year on their own.

For Nonprofits and Trusts

For Given Selected Tax Year

Non-Profit Companies have the choice of setting a fiscal year, especially for academic grants, in an order in line with their funding roll.

Cover Non-Profit and Estate Tax Rules

Form 990 should be filed within the 15th working day from the start of the 5th month after the closure of the financial year.

Changing Tax Years Effects

When or Why a Business Would Have to Shift

Transforming when a company undergoes desired reconstruction of their account hoping to obtain favorable results, enabling the business to more closely align with the general expectations of their field.

Business Proposing Process Under IRS Approval

File Form 1128 then submit it. A good reason must be provided and there is no guarantee.

Common Misunderstood Concepts Relating to Tax Years

Myth: Filing Deadline is Synonymous with the Tax Year

No—not true—the deadlines of filing are months later as the year only ends on the 31st of December.

Misconception With Calendar and Fiscal Year

These are considered unique to only larger businesses; however, smaller businesses can opt for them as well.

Critical Publications and IRS Forms

Form	Purpose
1040	Individual tax return
1065	Partnership return
1120	C Corporation return
990	Non-profit tax return
Publication 538	Adds details on accounting periods and methods

Other Forms of Technology Used to Track Time in the Tax Year

• IRS2Go Application
• TurboTax Calendar
• Google Calendar Alerts
• QuickBooks Tax Dashboard

Frequently Asked Questions (FAQs)

1. When does an individual’s tax year begin and end in the United States?

January 1 – December 31 every year.

2. As a freelancer, do I have the power to select a different tax year?

Yes, however only if it is accompanied with IRS approval and a justifiable reason using Form 1128.

3. Is there a difference between federal and state tax periods?

Normally yes, though other states could have different regulations concerning trusts and corporations.

4. What is the deadline for 2024’s tax year?

April 15, 2025. However, this could be further extended due to weekends or holidays.

5. How to determine if it is a fiscal year for me?

Your last tax filing or accounting software should check this. If your year ends in any month other than December, it is a fiscal year.

6. Are companies able to change their accounting period?

Yes, but the change needs IRS consent first by filling Form 1128.

Conclusion: Compliant and Prepared Throughout the Year

Knowing when the tax year starts and ends is beneficial in remaining compliant with IRS rules, planning, and dodging penalties. From individuals to freelancers, or business owners—monitoring these dates can enable one to maximize deductions and facilitate claim submission.

Final Tips: Bookmark the IRS tax calendar or synchronize it with your mobile phone in order to be more aware of deadlines.