How to File Prior Year Tax Returns

Filing Late? Self-Employed? Here’s What You Need to Know

Being your own boss can be incredibly freeing. No office politics, no micromanaging supervisors, and definitely no punching a time clock. But one thing self-employment doesn’t exempt you from is your tax responsibilities, especially when it comes to filing prior year tax returns.

If you’re self-employed and have missed filing one or more past returns, now’s the time to catch up. Here’s a friendly breakdown of what you need to know to get back on track, avoid penalties, and how to file prior year tax returns to stay on the IRS’s good side.

Who Counts as Self-Employed?

According to the IRS, you’re considered self-employed if you own a sole proprietorship, work as an independent contractor, are a partner in a business where you’re actively involved, or are a member of an LLC that’s not taxed as a corporation. That’s a broad net: Freelancers, gig workers, online sellers, consultants, and small business owners all fall under this category.

If this sounds like you and you missed filing a return from a previous year, you’re not alone. The important thing is taking steps now to file that return, because skipping it doesn’t make the taxes disappear.

What You Owe: It’s Not Just Income Tax

One of the big surprises for new self-employed folks is that you’re responsible for more than just income tax. Unlike employees, who split their payroll taxes with their employer, self-employed individuals pay both halves of Social Security and Medicare taxes. That’s what we call self-employment tax.

For context: Social Security tax is 12.4% and Medicare tax is 2.9%, bringing your total self-employment tax to 15.3%. (These numbers were current for 2010 and are still close today, though the income thresholds adjust each year.)

Here’s the silver lining: you can usually deduct half of your self-employment tax when calculating your income taxes. It doesn’t reduce what you owe in self-employment tax itself, but it does help lower your taxable income overall.

How to Estimate What You Owe

Before you file any past-due returns, it helps to know what you’re working with — especially if you don’t want to be caught off guard by a surprise tax bill. A self-employment tax calculator can be a lifesaver here. These tools estimate how much self-employment tax you owe based on your income.

To use one, you’ll typically just need two things: how much money you earned from self-employment during that tax year, and how much (if anything) you earned as a regular employee. If you didn’t work for anyone else that year, you can enter zero in the employer income section.

Once you have your estimate, you’ll be in a much better position to complete your prior year return. It’ll also help you figure out whether you’ll owe penalties and interest for the late filing.

Tips for Filing Prior Year Returns When Self-Employed

Start by gathering your records for the year you missed, income statements (like 1099s), business expenses, and any other documents that show what you earned and what you spent.

Use the correct IRS forms for that tax year. You can’t use this year’s forms to file a 2024 return, for example. Prior year forms are available on IRS.gov.

If you can’t e-file the return, which is often the case with older years, you’ll need to mail it in. Make sure it’s signed and sent to the right address for that tax year.

Don’t forget your self-employment tax. It’s filed as part of your regular tax return, usually using Schedule SE.

Self-Employment Tax Calculator ? Wage Information

When entering your wage information, make sure you add all your receipts from payments for services/products sold during the tax year. Then subtract your expenses (such as the cost of uniforms, meals, fuel, tolls, supplies, etc.) to arrive at your net income from self-employment. Put this number into the “Annual self-employment income” section of the tax calculator.

If you have other income from an employer, enter that into the second field of the tax calculator. After you fill in your information, click “Submit” and the tax calculator will provide a breakdown of your total self-employment tax. The calculator will also produce a pie chart graph of the amounts allocated to Social Security and to Medicare.

Self-Employment Tax Calculator: Interpreting the Results

Reading the results of the tax calculator is simple. There are five rows and two columns under the “Self-Employment Tax Analysis” chart. The rows include:  ‘Adjusted’ earnings, Less: self-employment deduction, Taxable self-employment earnings, Self-employment tax, and Total self-employment tax. These rows correspond to the figures in the two columns, which are: Social Security and Medicare.

By using this tax calculator, you are able to see exactly how much you are paying in Social Security and Medicare taxes. Therefore, you can ensure that you are paying the proper amount when tax season comes around.

The Final Word on How to File Prior Year Tax Returns

Filing past-due tax returns when you’re self-employed may seem overwhelming, but it’s totally doable, and worth it. Whether you’re trying to claim a refund, avoid more penalties, or just want peace of mind, catching up on old returns is a smart move.

Start by estimating what you owe using a self-employment tax calculator, grab the right forms for the year in question, and get that return in the mail. The sooner you file, the better your chances of avoiding extra fees and getting back in good standing with the IRS.

And remember, just because you’re self-employed doesn’t mean you’re on your own. There are tools and professionals out there who can help you through it, and we’re here to give you the starting points that will guide you through the process.

FAQ: How to File Prior Year Tax Returns

1. Can I still file a tax return for a year I missed?
Yes, you absolutely can. The IRS accepts prior year returns even if they’re several years old. It’s actually better to file late than never because filing gets you back on the IRS’s good side. It also helps protect future refunds and makes sure you stay eligible for certain tax credits. There’s no time limit on when the IRS can ask you to pay what you owe, but there is a time limit if you’re trying to claim a refund, so don’t wait too long.

2. Where do I get the right tax forms for an old return?
You’ll need to use the tax forms from the specific year you’re filing for, not the current year’s forms. You can find prior year forms and instructions on the IRS website under the “Forms and Publications” section. Make sure you follow the right year’s tax rules too, because things like tax rates, credits, and deductions can change from year to year.

3. Can I file an old return electronically?
In most cases, no. The IRS shuts down electronic filing for older returns once the season ends. That means you’ll need to print out your forms, sign them, and mail them to the IRS. Make sure you send them to the right address for the year you’re filing for, because the IRS mailing addresses can change depending on the type of form and where you live.

4. What happens if I’m due a refund for an old return?
If you’re owed a refund, you have a three-year window from the original due date of the tax return to claim it. After that, the refund basically disappears, and you lose the chance to get your money back. For example, if you didn’t file a 2021 return that was due in April 2022, you have until April 2025 to file and still claim the refund.

5. What if I owe taxes for a prior year?
If you owe, it’s better to file sooner rather than later. Penalties and interest keep growing the longer you wait. Filing the return stops the “failure to file” penalty from building up, even if you can’t pay everything right away. Plus, once you file, you might be able to set up a payment plan with the IRS to chip away at what you owe over time.

6. Can the IRS come after me for not filing old returns?
Yes, they can. If you don’t file, the IRS might eventually file a substitute return for you. But when they do it, they won’t include deductions or credits you might qualify for, so it often shows you owing way more than you actually should. Filing your own return gives you a chance to lower your tax bill and avoid bigger problems like wage garnishments, bank levies, or losing future refunds.

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