Tax Talk Tuesday: What's the Difference Between Calendar Year & Fiscal Year

Welcome to another episode of Tax Talk Tuesday. I’m Jonathon Lansink, a CPA here at JAKCPA’s, and I’m going to briefly discuss the difference between fiscal year and calendar year.

You likely know what a calendar year is, it’s January 1 through December 31st. This is probably your most common “tax filing period” because individual income tax returns default to this filing period. Tax documents like your W-2 will tell you how much income you earned from January 1 through December 31st, but did you know you can also elect to do a “fiscal year filing period?” This means you start your “filing year” some other time, like July 1st, and your year would then end June 30th the next year.
This is more common for businesses, and some estates and trusts, but technically individuals can do it as well if you keep your own records and report your income accurately. If you do this as an individual, you have to file a Form 1128 to request approval from the IRS to file this way before doing so.
This election would also change your tax return due date to be “on or before the 15th day of the fourth month after the close of your fiscal year.” So just like April 15th is the deadline for calendar year taxpayers, you get the same amount of time for fiscal year filings.
If you want to learn more, or if you have any questions, contact your JAK representative. Thanks for listening.

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#tax_talk_tuesday #jakcpas #Jonathon_Lansink #Calendar_Year #Fiscal_Year

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