What Are the Dates for Calendar, Fiscal, and Tax Quarters?
Get clarity on the distinct ways a year is divided into four parts. Understand specific dates for different financial and planning needs.
The year is often divided into quarters, which are three-month periods used for tracking financial performance, planning, and fulfilling obligations. While a quarter generally refers to one-fourth of a year, specific start and end dates differ depending on the context. Understanding these distinctions is important for individuals and businesses.
Understanding Calendar Quarters
Calendar quarters divide the standard Gregorian calendar year into four fixed periods. These quarters are consistently applied for general reporting, statistical analysis, and many business operations.
The first calendar quarter, Q1, spans from January 1 to March 31. Q2 covers April 1 through June 30. Q3 runs from July 1 to September 30, and Q4 encompasses October 1 to December 31. These periods are used by many entities, including the Internal Revenue Service (IRS).
Understanding Fiscal Quarters
Unlike calendar quarters, fiscal quarters are not tied to the standard January-to-December year. A fiscal year is a 12-month accounting period a business or organization chooses for financial reporting and budgeting. This flexibility allows entities to align their financial year-end with their natural business cycles. For instance, a retail business with peak holiday sales might choose a fiscal year ending in January to capture all holiday earnings within one reporting period.
The start and end dates of fiscal quarters are determined by the chosen fiscal year. Common fiscal year start dates include January 1, April 1, July 1, or October 1, though businesses can select any month. For example, a company with a fiscal year beginning July 1 would have its first fiscal quarter (Q1) run from July 1 to September 30, with its fiscal Q4 concluding on June 30 of the following year.
Understanding Tax Quarters
Tax quarters refer to specific periods and due dates for making estimated tax payments to the IRS, particularly for individuals and businesses with income not subject to standard withholding. These dates do not align with calendar quarters and are set to ensure taxpayers meet their obligations under the “pay-as-you-go” tax system. Estimated tax payments cover income tax, self-employment tax, and other taxes not covered by regular paycheck withholding.
For the 2025 tax year, the estimated tax payment due dates are April 15, 2025, for income earned from January 1 to March 31. The second payment is due on June 16, 2025, for income earned from April 1 to May 31. The third payment is due on September 15, 2025, covering income from June 1 to August 31. The final payment for 2025 income is due on January 15, 2026, for earnings from September 1 to December 31. If a due date falls on a weekend or legal holiday, the deadline shifts to the next business day.
Individuals need to make estimated tax payments if they expect to owe at least $1,000 in federal income taxes for the year, after accounting for withholding and credits. This often includes self-employed individuals, freelancers, and those with significant investment income, rental income, or capital gains. Corporations, on the other hand, must make estimated tax payments if they anticipate owing $500 or more. Taxpayers use forms like Form 1040-ES for individuals and Form 1120-ES for corporations to calculate and submit these payments, with penalties potentially assessed for underpayment.