Fiscal Year Filing Instructions


Introduction

If you file your income tax return based on a fiscal year instead of a calendar year, these instructions are for you.

You must use the same fiscal year for your Utah return as you used for your federal return.

You should prepare your federal tax return first, reporting income and deductions in the fiscal year to which they are attributable. Then prepare your Utah return using amounts reported on your federal return for income and deductions.

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Definitions

Accounting Period – If you keep your records on a calendar year basis, your accounting period is January 1 through December 31. If you keep your records on a fiscal year basis, your accounting period is from the first day of your fiscal year through the last day of your fiscal year. (IRS Pub 17, page 11; Pub 538, page 2.)

Calendar Year – A tax year beginning January 1 and ending December 31. (IRS Pub 17, page 11.)

Fiscal Year – A year ending on the last day of any month except December, or a 52-53-week year ending on the same day of the week each year. (IRS Pub 17, page 11; Pub 538, page 2; IT Reg. §§1.441-1 and 1.441-2.)

Tax Year – The annual accounting period used for keeping records and reporting income and expenses. (IRS Pub 17, page 13.)

Taxable Income – You must figure your taxable income on the basis of your tax year, either a calendar year or a fiscal year. (IRS Pub 17, page 11; IT Reg. §1-441-1.)

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Fiscal Year Differences in Calculating Your Tax Return

Dependent Support for Claiming Exemption

If you use a fiscal year to file your federal and Utah returns, you must provide more than one-half of the dependent’s support for the calendar year in which your fiscal year begins.

For example, if your fiscal year is from July 1, 2015 to June 30, 2016, you must provide over one-half the support of your child for the calendar year 2015 in order to claim his or her dependency exemption on your July 2015 to June 2016 tax return.

You will use the same exemptions on your Utah return to calculate the Utah taxpayer tax credit that you claimed on your federal return. (IRS Pub 17, page 29; Pub 501, page 14.)

Forms W-2 and 1099

If you file your tax return on a fiscal year basis, your Utah income and withholding tax must be reported as follows:

  • Claim a credit for only the Utah withholding tax withheld during the calendar year ending within your fiscal year.
  • Do not claim credit for any Utah tax withheld during the calendar year beginning in your fiscal year. You will claim credit for this withholding on your next fiscal year return.

The Form W-2 or 1099 you receive for the calendar year that ends during your fiscal year will show the tax withheld and the income you received during that calendar year.

Although you take credit for all the withheld tax shown on the form, you should report on your federal fiscal year return only the portion of the income shown on the form that you received during your fiscal year.

Example: You are filing your Utah return for the fiscal year July 1, 2015 through June 30, 2016. In January 2016, you received a Form W-2 showing wages for 2015 of $31,200 and Utah tax withheld of $1,560. Your payroll records show you received $15,000 of the wages from January 1 through June 30, 2015, and the remaining $16,200 from July 1 through December 31, 2015.

On your return for the fiscal year ending June 30, 2015, you should report the $15,000 in wages you were paid from January 1 through June 30, 2015. However, you do not claim any credit for the Utah withholding tax withheld during this period.

On your return for the fiscal year ending June 30, 2016 you should report the $16,200 wages received for the last six months of 2015, plus the $18,125 in wages received for the period January 1 through June 30, 2016. (See chart below.)

The Utah withholding tax reported on the return for the fiscal year ending June 30, 2016 would be the full amount shown on the 2015 Form W-2, or $1,560.

On your return for the fiscal year ending June 30, 2017, you will claim the credit for all Utah withholding tax withheld during 2016, but not for any withholding tax withheld during 2017.

Date Form W-2 Your Payroll Records Tax Return for FY Ending 6/30/20151 Tax Return for FY Ending 6/30/2016
Wages UT Tax Withheld Wages UT Tax Withheld Wages UT Tax Withheld Wages UT Tax Withheld
CY 20152 $31,200 $1,560            
1/1/2015 – 6/30/2015     $15,000 $750 $15,000 $0    
7/1/2015 – 12/31/2015     $16,200 $810     $16,200 $1,560
CY 2016 $37,700 $1,8853            
1/1/2016 – 6/30/2016     $18,125 $906     $18,125 $0
7/1/2016 – 12/31/2016     $19,5754 $979        

1 Your tax return for fiscal year ending 6/30/2015 also included your wages for 7/1/2014 through 12/31/2014 and all the withholding shown on your 2014 Form W-2.

2 CY is calendar year, January 1 through December 31, 2015.

3 Utah withholding on the 2016 Form W-2 ($1,885) will be included in your tax return for FY ending 6/30/2017, the fiscal year in which the calendar year 2016 ends.

4 Wages for 7/1/2016 through 12/31/2016 of $19,575 will be included in your tax return for FY ending 6/30/2017, the fiscal year in which the wages were received.

(IRS Pub 17, page 44; Pub 505, page 54.)

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Fiscal Year Return Due Date

A federal and Utah return for a fiscal year is due by the 15th day of the 4th month after the close of the fiscal year. When the due date for doing any act for tax purposes—filing a return, paying taxes, etc.—falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. (IRS Pub 17, page 9; UC §59-10-518.)

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Return to File for Fiscal Years

File using the tax return for the calendar year in which your fiscal year begins.

For example, if your fiscal year is 7/1/2015 through 6/30/2016, use the 2015 Utah return for filing.

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Utah Specific Instructions

Federal Adjusted Gross Income – Use the federal AGI reported on your fiscal year federal return.

Utah Additions to Income – Report additions to income on TC-40A, Part 1, for the fiscal year on the same basis as you determined your income for federal purposes.

Utah Subtractions from Income – Report subtractions from income on TC-40A, Part 2, for the fiscal year on the same basis as you determined your income and deductions for federal purposes.

Taxpayer Tax Credit – Calculate your Utah taxpayer tax credit using the exemptions and standard or itemized deductions used on your fiscal year federal return. Use the credit phase-out amount shown on the Utah return for the year in which your fiscal year began.

Non-refundable Credits – Calculate your non-refundable Utah credits using amounts and facts attributable to your fiscal year.

For example, to claim a credit for a contribution to a Utah Educational Savings Plan, the amount contributed during your fiscal year is used, but using the maximum allowed for the calendar year in which your fiscal year began. For fiscal years beginning in 2014 the maximum contribution is $1,860 ($3,720 for joint filers). For fiscal years beginning in 2015 the maximum contribution is $1,900 ($3,800 for joint filers). Your credit is 5% of the amount contributed during the fiscal year.

Utah Use Tax – Report Utah use tax for purchases made during your fiscal year, using the rate chart for the calendar year in which your fiscal year began.

Refundable Credits – Calculate your refundable Utah credits using amounts and facts attributable to your fiscal year, with the following exceptions:

  • Utah withholding tax is reported as shown on the calendar year Forms W-2 and 1099 in which your fiscal year began. See Forms W-2 and 1099 above.
  • Utah pass-through entity withholding tax is reported on the same basis as your Utah withholding tax from Forms W-2 or 1099.
  • Utah mineral production withholding tax is reported on the same basis as your Utah withholding tax from Forms W-2 or 1099.

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