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when does the tax year start and end?
I usually file my taxes in March. Does that mean that my tax year is from March to February? Or is it January 1 to December 31 like the calendar year?
I'm planning on officially opening my personal business today, April 2 2021. Will the income I make from this need to filed on the taxes due in 2021, or will this go on my taxes at the beginning of 2022?
4 Answers
- ShayLv 74 weeks agoFavourite answer
Everyone's tax year begins on January 1st and ends on December 31st.
It does not matter when you actually get around to filing the tax forms - the time frame you would be filing for is the entire previous calendar year.
In 2021 - you are filing for anything that happened anytime during 2020.
In 2022 - you are filing for anything that happened anytime during 2021.
- JayLv 64 weeks ago
Please sit down with an accountant before you open your business. It will mean the difference between making a profit and losing it all.
- Coffee DrinkerLv 74 weeks ago
For personal taxes the tax year is the calendar year - from January 31st to December 31st. It does not matter when you actually file your tax return, the tax year stays the same.
Business entities such as corporations can set their own fiscal year and do their accounting records and taxes accordingly. For example the last place I worked set their fiscal year to end on August 31st. So as far as the accountants were concerned September 1st was the beginning of a new year.
Individuals are not allowed to do this for their personal tax records though. You're stuck with the 1/1 through 12/31 calendar year.
