Should I File Past Taxes From Years Ago Now?

It’s the start of a new year, which means it’s a good time to start thinking about filing your taxes. But what if you still have past taxes to file? Is it a good idea to file last year’s taxes if you still owe taxes from a few years ago? Of course it is! Back taxes can be a huge burden, financial, and a detriment to getting your full, current year refund. The sooner you file them, the better.

Fortunately, filing your past taxes makes filing your current year taxes easier–and vice versa. So make this year the year you get all your taxes taken care of. Here’s how:

• Collect all documents. Every year you qualify to file taxes, you receive a W-2 form. Make sure that you have all of these, even your past taxes W-2’s together, before filing. If one is missing from your records, contact your employer or the IRS to receive a copy of it. Additionally, for this year’s taxes all employers have to legally give you your W-2 (or 1099 Reporting) form by the end of February. Make sure that they do!
• File your past taxes first. Once you have everything gathered together, file the oldest taxes first. That way you won’t be penalized when your new taxes are filed and you won’t lose any part of your refund. Back taxes are also a little more complex to file, so it’s important to take the time to do them right.Follow up. When you file two types of taxes at once–both past taxes and current taxes–it’s best to check to make sure the IRS knows that you have filed both types. Due to the way taxes are processed, it’s possible that your current taxes would get processed before your past taxes, which might lead to your refund being garnished. Besides tracking the documents to make sure that the back taxes get processed first, follow up. Don’t be afraid to call the IRS and ask questions, especially if you take the time to handle your taxes earlier in the year.
• Use an online filing service. Online filing is, without a doubt, the easiest and cheapest way to file your current taxes. It’s also the easiest way to file your past taxes! Both can be filed online, which saves you time and money and makes it a lot easier to see if the IRS has received things and when they have. So avoid IRS-induced headaches and file online this year.

Photo via Patty Maher on Flickr.

This entry was posted on Thursday, May 9th, 2013 at 8:44 pm and is filed under Taxes for Prior Years. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.