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Tax Year

A tax year is the annual accounting period used to compute taxable income and file a return.

Quick answer

A tax year is the annual accounting period used to compute taxable income and file a return.

It matters because due dates, estimated payments, and year-end planning all depend on the tax year in question.

Most individuals use the calendar year as the tax year for federal filing.

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Plain-English Definition

What Tax Year means

A tax year is the annual accounting period used to compute taxable income and file a return.

Why it matters It matters because due dates, estimated payments, and year-end planning all depend on the tax year in question.
Simple example Most individuals use the calendar year as the tax year for federal filing.
Related Questions

Questions people ask about Tax Year

What does Tax Year mean?

A tax year is the annual accounting period used to compute taxable income and file a return.

Why does Tax Year matter?

It matters because due dates, estimated payments, and year-end planning all depend on the tax year in question.

What is a simple example of Tax Year?

Most individuals use the calendar year as the tax year for federal filing.

When should I ask a CPA about Tax Year?

Ask a CPA when the term affects your tax bill, estimated payments, deductions, or a planning move before year end.

How is Tax Year different from Accounting Method?

A tax year is the annual accounting period used to compute taxable income and file a return.

Keep Reading

Related glossary terms

Form 3115 Form 3115 is the IRS application used to request or report certain accounting method changes. Estimated Taxes Estimated taxes are periodic tax payments made during the year when withholding will not fully cover the expected tax bill. Taxable Income Taxable income is the portion of income that remains after allowed deductions and adjustments have been applied. Above-the-Line Deduction An above-the-line deduction is a deduction taken in arriving at adjusted gross income.
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