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Categories: General Tax Terms

Tax Year

The Tax Year is a 12-month period used by individuals and businesses to report income, expenses, and other tax-related information to the Internal Revenue Service (IRS) or relevant tax authority.

For individuals, the tax year typically aligns with the calendar year, running from January 1 to December 31. Businesses, however, may choose a different fiscal year that ends on a date other than December 31. The choice of tax year can impact reporting deadlines and tax liabilities.

For example, a company that operates on a fiscal year ending June 30 will report its income and expenses for the period from July 1 of the previous year to June 30 of the current year.

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