Starting Over On FreeTaxUSA

Quick answer

• You can start over on FreeTaxUSA by deleting your current tax return and creating a new one.
• This process is available before you file your taxes with the IRS or state.
• Deleting your return will erase all entered data, so ensure you have your tax information ready again.
• If you’ve already filed, you’ll need to file an amended return, which FreeTaxUSA also supports.
• Always double-check your information before submitting any tax documents.

What to check first (before you start over)

Filing Status

Your filing status (Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Widow(er)) significantly impacts your tax liability, standard deduction, and available credits. Ensure you select the most accurate status for your situation.

Income Sources

Gather all documentation for your income, including W-2s from employers, 1099 forms for freelance work or investments, and any other income statements. Missing income can lead to penalties and interest.

Withholding or Estimated Payments

Review your W-4 form with your employer or your estimated tax payments. If you consistently owe a large amount or get a huge refund, your withholding might need adjustment. FreeTaxUSA can help you estimate this for the next tax year.

Deductions and Credits

Understand which deductions (e.g., student loan interest, IRA contributions) and credits (e.g., child tax credit, education credits) you qualify for. These can significantly reduce your tax bill. Having your supporting documents ready will make entering this information easier.

Deadlines and Extensions

Be aware of the general tax filing deadline, typically April 15th, and the process for requesting an extension if needed. An extension to file is not an extension to pay; estimated taxes are still due by the original deadline.

Step-by-step (simple workflow to start over)

1. Log in to your FreeTaxUSA account.

• What “good” looks like: You are successfully logged into your dashboard and can see your current tax return status.
• Common mistake: Forgetting your password and not using the account recovery option.
• How to avoid it: Use the “Forgot Password” link and follow the on-screen instructions.

2. Navigate to your tax return.

• What “good” looks like: You are on the page that lists your active tax return.
• Common mistake: Accidentally clicking on an old tax year’s return if you’ve filed previously.
• How to avoid it: Carefully read the year associated with the return you select.

3. Locate the option to delete your return.

• What “good” looks like: You find a button or link clearly labeled for deleting your current tax return. This is often found in account settings or a specific section related to your return management.
• Common mistake: Overlooking the delete option because it’s not prominently displayed.
• How to avoid it: Look for links like “Delete Return,” “Start Over,” or similar phrasing within your account dashboard or the return itself.

4. Confirm your decision to delete.

• What “good” looks like: You have acknowledged the warning that all data will be erased and confirmed you want to proceed.
• Common mistake: Clicking “yes” without fully understanding that all your entered information will be lost.
• How to avoid it: Read the confirmation message carefully. Ensure you are ready to re-enter all your tax details.

5. Initiate the creation of a new return.

• What “good” looks like: After deleting, FreeTaxUSA prompts you to start a new return or you can select that option from your dashboard.
• Common mistake: Thinking you’re done after deleting and not immediately starting a new one, potentially delaying your filing.
• How to avoid it: Look for the “Start New Return” or similar prompt immediately after the deletion confirmation.

6. Enter your basic personal information.

• What “good” looks like: You accurately input your name, Social Security number, address, and filing status.
• Common mistake: Typos in your Social Security number or incorrect filing status.
• How to avoid it: Double-check each field before moving to the next section.

7. Re-enter your income details.

• What “good” looks like: All your W-2s, 1099s, and other income documents are entered correctly with the right amounts.
• Common mistake: Omitting a source of income or entering incorrect figures from your documents.
• How to avoid it: Have all your income forms organized and readily available before you begin this step.

8. Input your deductions and credits.

• What “good” looks like: You accurately claim all eligible deductions and credits, with supporting documentation in hand.
• Common mistake: Forgetting to claim a deduction or credit you’re entitled to, or entering information incorrectly.
• How to avoid it: Review the list of common deductions and credits and consult your tax documents to ensure you don’t miss any.

9. Review your entire return.

• What “good” looks like: You have gone through all sections of the return and are confident the information is accurate. FreeTaxUSA’s review process flags any potential errors.
• Common mistake: Skipping the final review step or not addressing the warnings flagged by the software.
• How to avoid it: Take your time during the review process. Address every discrepancy or warning the software brings to your attention.

10. Proceed to file.

• What “good” looks like: You have completed all necessary steps and are ready to submit your return electronically.
• Common mistake: Filing before you are completely sure of accuracy.
• How to avoid it: Only click “File” when you are 100% confident in all the information entered.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Incorrect filing status	Overpaying or underpaying taxes; missing out on credits.	Re-evaluate your status based on IRS definitions; file an amended return (Form 1040-X) if already filed.
Forgetting to report all income	Underpayment penalties, interest, and potential audit from the IRS.	Amend your return with the missing income information.
Errors in Social Security Numbers	Delayed refunds, incorrect tax calculations, or rejection of your return.	Carefully verify all SSNs for yourself, spouse, and dependents; file an amended return if needed.
Incorrectly claiming deductions/credits	Audit risk, penalties, and interest if claimed incorrectly; or missing out on savings.	Ensure you meet all eligibility requirements for deductions and credits; keep thorough records; amend if necessary.
Not checking for tax software errors	Incorrect tax liability, potential penalties.	Use the software’s built-in review features; manually review key figures before filing.
Filing with a typo in bank account details	Delayed direct deposit refunds or returned payments.	Double-check routing and account numbers before submitting; contact your bank if a refund is delayed.
Missing the filing deadline (without extension)	Failure-to-file penalty and interest on any unpaid tax.	File as soon as possible; if you owe, pay what you can to minimize interest and penalties. Consider filing an extension if possible.
Not understanding estimated tax payments	Underpayment penalties if you have significant income not subject to withholding.	Calculate and pay estimated taxes quarterly if you’re self-employed or have other substantial income sources.
Forgetting to sign and date the return	Return will be considered not filed and can lead to penalties.	Ensure you digitally sign or physically sign and date your return before submission.
Not keeping copies of filed returns	Difficulty when amending or referencing past tax years.	Save a digital or physical copy of your filed return and all supporting documents for at least three years.

Decision rules (simple if/then)

• If you are married and both you and your spouse have income, then filing jointly is often more beneficial because it can lead to a lower overall tax liability.
• If you are self-employed, then you likely need to make estimated tax payments quarterly because taxes are not being withheld from your income.
• If you have significant medical expenses (above a certain percentage of your Adjusted Gross Income), then itemizing deductions may be more advantageous than taking the standard deduction.
• If you paid for education expenses for yourself or a dependent, then you may qualify for education credits, which directly reduce your tax bill, making it worthwhile to explore this.
• If you are unsure about your tax situation or have complex investments, then consulting a tax professional is advisable because they can provide expert guidance and ensure accuracy.
• If you find errors after filing your return, then you should file an amended return (Form 1040-X) because this is the correct procedure to correct mistakes.
• If you received a notice from the IRS, then you should read it carefully and respond by the deadline because ignoring it can lead to further penalties and interest.
• If you’re starting over because you made a significant mistake, then deleting your current return on FreeTaxUSA is the correct first step before re-entering information.
• If you are over 65 or blind, then you may be entitled to an additional standard deduction amount, so check the IRS guidelines for your filing status.
• If you have investment income, then you need to report it accurately, as capital gains and dividends are taxed differently.
• If you are considering making changes to your withholding, then use FreeTaxUSA’s tools or the IRS Withholding Estimator to determine the correct W-4 adjustments.

FAQ

Q: Can I truly start over on FreeTaxUSA if I’ve already paid for filing?

A: If you have paid for filing but have NOT yet submitted your return to the IRS or state, you can typically delete your current return and start over. If you have already filed, you will need to file an amended return.

Q: What information do I need to have ready when I start over?

A: You’ll need all your income documents (W-2s, 1099s), records of any deductions or credits you’re claiming (like receipts for education expenses or medical bills), and personal information for yourself, your spouse, and dependents.

Q: Will deleting my return cost me more money on FreeTaxUSA?

A: Deleting your return itself is usually free. You only pay when you file. If you need to re-file, you will pay again for the current tax year’s filing.

Q: How do I know if I should file jointly or separately if I’m married?

A: Generally, married couples benefit from filing jointly due to tax breaks. However, in some situations with high medical expenses or significant differences in income, filing separately might be better. FreeTaxUSA can help you compare both options.

Q: What if I realize I made a mistake after I’ve already filed?

A: You will need to file an amended tax return using Form 1040-X. FreeTaxUSA supports filing amended returns, and you can typically do this through their platform.

Q: Is there a limit to how many times I can start over on FreeTaxUSA?

A: While FreeTaxUSA allows you to delete and restart, there isn’t a specific stated limit. However, it’s best to be as accurate as possible to avoid repeated restarts.

Q: What happens if I don’t report all my income when I restart?

A: If you fail to report all income, you could face penalties and interest from the IRS. It’s crucial to ensure all income sources are accurately entered.

What this page does NOT cover (and where to go next)

• Amended returns for previous tax years: This guide focuses on starting over for the current tax year. If you need to amend a prior year’s return, seek specific instructions for that process.
• State-specific tax laws: While FreeTaxUSA handles federal and state taxes, this guide provides general guidance. State tax rules can vary significantly.
• Complex investment strategies: This article does not delve into the intricacies of specialized investment tax implications, such as offshore accounts or advanced derivatives.
• Business tax filings: This guide is for individual tax returns. Business tax filings have different forms and requirements.
• Tax implications of specific life events: This does not cover niche situations like divorce settlements, international taxation, or cryptocurrency sales in detail.