Life happens, and sometimes, when you're knee-deep in tax preparation with TurboTax, you realize you need a do-over. Perhaps you started with the wrong tax year, made a significant error early on, or simply want to approach your taxes with a fresh perspective. Whatever the reason, clearing your TurboTax return and starting over is often a straightforward process, though the exact steps depend on whether you're using TurboTax Online or the Desktop/CD version.
Ready to hit the reset button on your taxes? Let's dive in!
A Comprehensive Guide: How to Clear and Start Over in TurboTax
Step 1: Determine Your TurboTax Version
Before you do anything, it's crucial to know which TurboTax product you're using. Are you accessing it directly through a web browser (TurboTax Online), or did you purchase a CD/download and install it on your computer (TurboTax Desktop/CD)? The steps vary significantly between these two versions.
TurboTax Online: You log in to your account on the TurboTax website to access your return.
TurboTax Desktop/CD: You launch an application installed on your computer from a CD or a downloaded file.
Step 2: Important Considerations Before You Clear
Before you proceed, keep the following in mind:
Unfiled and Unpaid Returns: The "clear and start over" option is primarily available if you haven't paid for your TurboTax Online product, haven't e-filed your return, or haven't registered the Free Edition. If you've already paid, filed, or registered, your options might be more limited, and you might need to amend your return (a different process entirely) or manually edit existing entries.
Data Loss: Clearing your return means all the data you've entered so far will be deleted. Make sure you have all your tax documents (W-2s, 1099s, receipts, etc.) readily available to re-enter the information.
Saving a Copy (Desktop Users): If you're using the Desktop version, it's a very good idea to save a copy of your current, potentially erroneous return before you start a new one. This way, you can refer back to it for information or compare it later if needed.
Step 3: Clearing Your Return - Step-by-Step Instructions
The process differs for online and desktop versions. Choose the section that applies to you.
For TurboTax Online Users:
This is generally the simpler method for a fresh start.
Sub-heading: Accessing the "Clear & Start Over" Option
Log In to Your TurboTax Account: Go to the TurboTax website and sign in with your User ID and password.
Continue Your Return: Once logged in, select "Continue your return" if prompted, or navigate to where you are currently working on your taxes.
Locate "Tax Tools": On the left-hand side menu of the screen, look for an option called "Tax Tools".
Select "Clear & Start Over": Click on "Tax Tools." A drop-down menu will appear. From this menu, select the option "Clear & Start Over."
Confirm Your Action: A pop-up window will appear, asking you to confirm if you are sure you want to clear all your entries and start over. Carefully read the warning. If you are certain, click "Yes" or "Clear Return" (the exact wording may vary slightly).
Confirmation: You will then see a confirmation screen that your entries have been cleared. Click "Continue" to begin your new return from scratch.
Important Note for Online Users: If you do not see the "Tax Tools" option or "Clear & Start Over," it's highly likely that you have already paid for your TurboTax Online product or e-filed your return. In such cases, you cannot simply "clear and start over." You would need to consider amending your return after it's been processed by the IRS, or if it hasn't been filed, you might need to manually go back through each section and correct the information.
For TurboTax Desktop (CD/Download) Users:
The desktop version works with individual tax files saved on your computer, making the "start over" process different. You don't "clear" a return in the same way; instead, you simply start a new one.
Sub-heading: Starting a Brand New Return
Open Your TurboTax Desktop Program: Launch the TurboTax application on your computer.
Navigate to "File" Menu: In the upper-left corner of the program window, locate and click on the "File" menu option.
Select "New Tax Return": From the "File" drop-down menu, choose "New Tax Return".
Choose Your Starting Point: The program will then guide you through starting a new tax return, typically asking if you want to import data from last year's return or start completely from scratch. Choose the option that best suits your need for a fresh start.
Saving Your Old Return (Optional but Recommended):
While you're starting a new return, your previous, incomplete return will still be saved on your computer as a separate
.taxfile.It's a good practice to rename your old return file (e.g., add "_OLD" or "_DELETE" to the filename) so you can easily distinguish it from your new return. You can do this by navigating to where your TurboTax files are saved (usually in your "Documents" folder, under a "TurboTax" subfolder for the specific tax year).
You can keep this old file for reference, or you can delete it later once you are confident in your new return.
Sub-heading: Deleting an Old/Unwanted Desktop Return File (Optional)
Close TurboTax: Ensure the TurboTax program is completely closed.
Locate Your Tax Files: By default, TurboTax desktop saves your tax files in a specific location on your computer.
Windows: Typically
Documents > TurboTax > [Tax Year](e.g.,Documents > TurboTax > 2024).Mac: Generally within your "Documents" folder or a specific "TurboTax" folder.
The tax files will have a
.tax[year]extension (e.g.,.tax2024).
Identify the File to Delete: Find the
.taxfile corresponding to the return you wish to permanently remove. Be absolutely sure you're deleting the correct file.Move to Recycle Bin/Trash: Right-click on the file and select "Delete" (Windows) or drag it to the Trash (Mac).
Empty Recycle Bin/Trash (Optional): To permanently remove the file from your system, empty your Recycle Bin (Windows) or Trash (Mac). Once deleted from here, the file cannot be recovered.
Step 4: Beginning Anew - Best Practices
Now that you've cleared the slate, here are some tips for a smooth restart:
Gather All Documents: Before you even open TurboTax, ensure you have all your necessary tax documents organized and readily accessible. This includes W-2s, 1099s (various types: INT, DIV, MISC, NEC, B), mortgage interest statements (1098), student loan interest statements (1098-E), health insurance forms (1095-A, B, C), and any other relevant income or deduction documentation.
Start Fresh with a Clear Mind: Take a moment to review why you needed to clear your previous return. What mistakes were made? What information was missing? This will help you avoid repeating the same issues.
Go Section by Section Carefully: Don't rush. TurboTax is designed to guide you step-by-step. Read each question carefully and input accurate information.
Utilize Help Resources: If you're unsure about a particular section or question, TurboTax offers excellent built-in help features, explanations, and links to support articles. Don't hesitate to use them.
Save Frequently (Desktop Users): If you're on the desktop version, save your work regularly to prevent data loss in case of a power outage or system crash.
Review Thoroughly: Before you consider filing, review your entire return multiple times. TurboTax has a review feature that checks for errors and omissions. Take advantage of it.
Step 5: Final Review and Filing
Once you've re-entered all your information and feel confident about your tax return:
Run the Error Check: TurboTax will have an automated error check function. Run it and address any flagged issues.
Review Your Forms: Look at the actual tax forms (Form 1040, schedules, etc.) generated by TurboTax. Does everything look correct and align with your understanding of your tax situation?
Consider a Professional Review (Optional): If your tax situation is complex, or if you're feeling uncertain, consider TurboTax's Live Assisted or Full Service options, or consult with a tax professional for a final review before filing.
File Your Return: Once you are absolutely certain everything is accurate, proceed with filing your return. Follow the on-screen prompts for e-filing or printing for mail.
FAQs: How to Clear and Start Over TurboTax
Here are 10 common questions related to clearing and starting over in TurboTax, with quick answers:
How to tell if I'm using TurboTax Online or Desktop?
Quick Answer: If you access TurboTax through a web browser (like Chrome, Firefox, Safari) and log in to an account, you're using TurboTax Online. If you launch an application installed on your computer, you're using the Desktop/CD version.
How to clear data in TurboTax Online if I haven't paid yet?
Quick Answer: Log in, go to "Tax Tools" on the left menu, and select "Clear & Start Over." Confirm your decision.
How to start a new return in TurboTax Desktop/CD?
Quick Answer: Open the TurboTax Desktop program, go to "File" in the top-left menu, and select "New Tax Return."
How to delete an old or unwanted .tax file from my computer (Desktop version)?
Quick Answer: Close TurboTax, navigate to your "Documents > TurboTax > [Tax Year]" folder on your computer, locate the
.taxfile you want to delete, right-click (Windows) or drag to Trash (Mac), and select "Delete."
How to clear a state return without clearing the federal return in TurboTax?
Quick Answer: In TurboTax Online, you typically clear the entire return. In TurboTax Desktop, you can often delete individual state returns without affecting the federal return by going to the state section and looking for an option to delete the state.
How to know if I've already paid for TurboTax Online, preventing a clear and start over?
Quick Answer: If the "Clear & Start Over" option is not visible under "Tax Tools," or if TurboTax prompts you to print or e-file immediately without that option, you've likely already paid or are too far along in the filing process.
How to save a copy of my current TurboTax Desktop return before starting over?
Quick Answer: While in your current TurboTax Desktop return, go to "File" and select "Save As..." Give it a new name (e.g., "MyTaxes2024_Old") to preserve a copy.
How to get back to the beginning of my TurboTax Online return after clearing?
Quick Answer: After confirming "Clear & Start Over," you'll be redirected to the beginning of the tax interview process.
How to re-import last year's tax data after clearing and starting over?
Quick Answer: When starting a new return (especially in the Desktop version), TurboTax will usually offer an option to import data from your previous year's TurboTax file. In TurboTax Online, you may need to manually re-enter information if the import option isn't presented automatically after a "Clear & Start Over."
How to proceed if I cleared my return by mistake?
Quick Answer: If you cleared your return in TurboTax Online by mistake, there's no "undo" button; you'll have to re-enter all your data from scratch. If you saved a copy of your Desktop return, you can reopen that saved file.