Fiscal Year
A 12-month accounting period that ends on the last day of any month other than December. Used mainly by businesses and some trusts, not by individual taxpayers.
A fiscal year is a 12-month accounting period that does not correspond to the calendar year. A fiscal year can end on the last day of any month except December — for example, July 1 through June 30. Some entities use a 52-53 week fiscal year that always ends on the same day of the week.
Most individuals must use the calendar year for tax purposes. However, businesses — especially corporations, partnerships, and trusts — may elect or be required to use a fiscal year. S corporations and partnerships generally must conform to the tax year of their owners, which usually means the calendar year.
The filing deadline for a fiscal-year entity is the 15th day of the 4th month after the fiscal year ends (for corporations) or the 15th day of the 3rd month (for partnerships and S corporations). Understanding fiscal years is mainly relevant if you own a business, receive K-1 income from a partnership, or work with entities that operate on a non-calendar schedule.
Related Terms
Tax Year
The 12-month accounting period for calculating and filing taxes. For most individuals, the tax year is the calendar year (January 1 through December 31).
Tax Return
The form(s) you file with the IRS to report income, claim deductions and credits, and calculate your tax liability or refund. For individuals, this is Form 1040.