What to Do if You Duplicate Filing Tax Returns?

Tax forms and submission can be time-consuming and confusing for many taxpayers in the US. At some point, you might wonder what happens if you duplicate filing tax returns unintentionally or you need to change an error on your original returns. 

This article will help you answer what to do if you duplicate tax returns and how to correct if you made a mistake on your original tax forms. 

What happens if I duplicate filing tax returns?

The most common concern for most people who discover they have duplicated their tax returns is whether they will be fined.

If you find yourself in this situation, you’ll be happy to hear that you won’t have to pay taxes again in the same year. Individuals who unintentionally file two tax returns won’t also get fined. You wouldn’t face any consequences if you filed your taxes correctly and didn’t under-report your income, even if you completed them twice.

Only people who submit their taxes late or avoid paying their taxes are subject to financial tax penalties.

However, the IRS does not accept filing two federal tax returns. Since your Social Security Number (SSN) has been used to file only one return, the IRS will only accept the first one and automatically reject any additional return filed with that SSN. 

They will also review the highlighted form to determine if the double filing was an error, a sign of fraudulent activity, or an effort at financial crimes. After that, you will probably receive an error code about the second one explaining why it got rejected. 

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What to do if you accidentally duplicate filing tax returns? 

If you accidentally submitted your taxes multiple times, but it does include the same data on both applications, you usually don’t need to do anything else.

When the IRS receives your subsequent tax return, it will review the double filing and will most probably conclude that it was found to be false. In this case, the IRS will immediately dismiss the second form, and you will most likely receive a warning message informing you of this.

On the other hand, if you submit a subsequent tax return to fix a problem on the first, you must file a tax return update using a different form to change errors or oversights in the original return. You need to file and submit Form 1040-X on paper because this form isn’t available online. 

Typically, you will not need to do anything additional at this point. If you previously duplicated your tax returns by email, it may take weeks or months for the IRS to review the two different forms and alert you of the denial. At this point, they should have received your Form 1040-X. After the review, you should ask for confirmation that the data on the initial update has been amended.

If you haven’t heard back from the IRS regarding your updated tax return after three weeks, you should call the IRS’s hotline for customer support. It’s a good idea to track your Form 1040-X‘s progress to be aware of the next steps.

The bottom line

If you don’t want to find yourself wondering what happens if you duplicate filing tax returns, you should consider asking a tax professional to prepare and check your return. A tax professional can help you avoid mistakes in tax filing and even make the best out of your deductions. 

Don’t forget to subscribe to the Shoeboxed blog for more engaging tax-related knowledge and useful tax tips for freelancers! 

About Shoeboxed

Shoeboxed is a receipt management application that turns your receipts and business documents into a digital format in just one click by taking a picture straight from your smartphone or scanning a pdf. It automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease. Shoeboxed ensures you will always have your receipts securely stored and ready for tax purposes.

Access your Shoeboxed account from your web browser or smartphone app. Stay audit-ready with Shoeboxed for FREE now!

Top 3 Lessons Learned for Filing Business Taxes in 2022

If you’ve submitted your business tax returns before April 15, congratulations! You’ve successfully passed 2022’s tax season! On the other hand, if you’re still struggling with your financial records and IRS forms, no worries, we’re here to help! This article reveals the top 3 lessons learned for filing your business taxes in 2022. 

Update yourself on tax law changes

The first and foremost thing to remember when filing your business taxes is to educate yourself on the areas of taxation that affect you and keep yourself updated on tax rules and developments. It’s always a wise option to keep track of the current news because things change annually.

The changes listed below are in effect starting in 2022, so be aware of what they entail for your small business when submitting.

Employee Retention Tax Credit

The Employee Retention Tax Credit (ERTC) is a financial incentive for employers who suffered lower revenues or business disruptions due to government-imposed limitations in 2020 and 2021. Businesses and certain non-profit organizations that paid employees despite the COVID-19 pandemic’s obstacles are also eligible for the ERTC, and many beneficiaries are receiving cash refunds. 

Though ERTC expired at the end of 2021, you can still claim this tax credit in 2022. Business owners have three years after the program’s closure to review wages paid after March 12, 2020, to see if they are eligible. The requirements to claim ERTC are the following: 

  • Your business recovered from a significant reduction in gross receipts
  • You haven’t claimed this credit before. 

Excess business-loss limitation

Businesses could transfer net cash outflows backward five years or forward forever in 2019 and 2020 thanks to a suspension of Tax Cuts and Jobs Act provisions. Nevertheless, those rules have been reinstated for the 2021 tax period.

This means that taxpayers cannot claim losses totaling more than $524,000 (for couples filing separately) or $262,000 (for the unmarried). This relates to business earnings and liabilities, notably Schedule C and revenue and shortfalls from pass-through entities.

Furthermore, they cannot use W-2 wages to cover business losses. Husband and wife taxes are paid separately and may result in a tax obligation even if lost income exceeds spousal earnings.

Interest expense limitation

Another tax law suspended to assist Americans during the pandemic is the accrued interest restriction rule, which will be reinstated for the 2021 tax year. This regulation restricts taxable income to the current tax year and cuts the financing costs deduction from 50% to 30% of modified tax liability.

Set up a checklist for filing your business taxes

When you run your own business, you’ll be accountable for keeping track of various critical records and tasks. It’s a good idea to establish a checklist to collect all the data you have to monitor year-round. This checklist helps you identify and collect your important documents (such as the home office or travel expenses) and keep them for tax preparation. 

Your tax status will probably be similar year to year. Even if your tax situation changes, you can still use the discipline you set in place during the year to expand on in the future. A little effort in planning and staying organized can go a long way.

File your taxes as soon as possible

It might be a good idea to schedule and have all of your papers in one place to assist you in filing early and receiving your tax refund quickly. If you are getting a refund, the earlier you file your form, the faster you will receive your refund—which means more cash on hand during this difficult time.

The sooner you file your taxes, the more time you’ll have to correct any bookkeeping problems or locate lost invoices, documents, or invoices. This additional time can go a fair distance toward reducing stress throughout what can be a stressful time of year.

Additionally, filing your taxes as soon as possible might help you overcome your financial flow. It’s critical to keep track of your 2022 quarterly tax estimate requirements since they may be changing continuously. 

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The bottom line

When filing your business taxes, remember to use Shoeboxed to save you time and hustle!

Shoeboxed is a receipt management application that turns your receipts and business documents into a digital format in just one click by taking a picture straight from your smartphone or scanning a pdf. It automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease. Shoeboxed ensures you will always have your receipts securely stored and ready for tax purposes.Access your Shoeboxed account from your web browser or smartphone app. Stay audit-ready with Shoeboxed for FREE now!