A tax return covers 12 months, known as a "tax year." U.S. citizens pay taxes on income received during the tax year, from January 1 to December 31.

The Internal Revenue Service (IRS) receives a tax return from most taxpayers in 2021, including taxes paid or owed for the calendar year 2020.

It was initially slated for April 15, 2019, but now taxpayers have until May 17, 2021, to file their 2020 federal income tax returns. Even though payment has been delayed, it is conceivable that it will be made today. Your state's deadline for filing taxes may not have been extended.

The deadline for paying your federal taxes for 2020 has been extended to June 15, 2021, if you were affected by the devastating Texas snowstorm in February of that year. Even if you don't live in Texas but were impacted by the tragedy, you may still be eligible.

IMPORTANT LESSONS TO TAKE AWAY

A "tax year" refers to the 12 months covered by a tax return.

A person's calendar tax year begins from January 1 to December 31 of each year

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U.S. tax returns are usually due for the previous calendar year

on April 15 of the following year.

The fiscal year or the calendar year can be employed when filing business taxes.

Acknowledging A Tax Year

Tax years are employed in the accounting world to keep track of financial transactions, pay or withhold taxes, and report earnings and expenditures.

Working people pay taxes all year, regardless of how much money they make. It's common for them to file their tax returns on April 15 of the following year and either pay any outstanding taxes or request a refund of overpaid taxes.

Self-employed workers and small business owners often submit quarterly to declare their revenue and estimate their quarterly tax obligations. Annual documentation is also presented to ensure that the accounts are in balance, and if they aren't, a refund is requested.

Businesses can use either the calendar year or the fiscal year to determine their tax reporting periods' start and end dates (F.Y.).

It's common knowledge that the tax year runs from January 1 to December 31 each year. If December 31 falls on a weekend, holiday, or other non-final-day of-the-month, it is not considered a "fiscal year." Fiscal years of businesses that are shorter than 12 months are considered short tax years.

Differences In Tax Years

In addition to the calendar and fiscal tax years, there are short and state tax years.

Filings for state income taxes

Every state has its tax system, although most collect income taxes, which must be filed annually by April 15. Virginia has a May 1 reporting deadline, which is the exception.

In many states, income taxes are not imposed. Property taxes in New Hampshire make up for the state's lack of an income or sales tax.

From April 1 through March 31 of each year, all property owners in New Hampshire are taxed.

Tax Periods That Are Quite Short

The term "short tax year" refers to a fiscal or calendar year that is less than 12 months long. If a new firm is started or its accounting cycle is altered, the tax year may be shorter than usual.

Short tax years are the norm just for businesses. To avoid using the calendar year while filing taxes, most individual taxpayers cannot choose a fiscal year at all.

An organization's decision to alter its tax year, which requires IRS approval following submission of Form 1128, may also result in a shortened tax year. Taxes are paid for a limited period beginning on January 1 and ending on January 31 each year; this is known as "short" taxation.

For example, imagine a corporation that traditionally reports its financial performance from July to June, shifting its fiscal year to begin in October. A tax return must be filed for the limited fiscal year from June to October.

The End of the Tax Season Is in Sight

Individuals haven't traditionally used a December 31 tax year with an April 15 yearly return deadline. When the 16th Amendment was enacted in 1913, Congress established March 1 as the tax-filing deadline. This deadline was repeatedly pushed back, and on April 15, it finally arrived.

The IRS said that delaying the deadline in 1954 helped to alleviate the burden of processing so many returns at once.

As a result of the move to April, the number of qualified taxpayers has increased. The federal government taxed only a tiny percentage of exceedingly wealthy persons before the 16th Amendment. As a result, the total number of taxpayers has grown tremendously.