Can You File 2021 Taxes Without Filing 2020?

It is possible to file your 2021 tax return even if you have not yet filed your 2020 return. The Internal Revenue Service (IRS) has procedures in place to handle returns that are filed out of sequence. While the agency prefers that taxpayers file returns chronologically, you will not be prevented from filing a current return simply because a prior one is outstanding. The important step is to ensure your current year’s tax obligations are met in a timely manner to avoid potential penalties and interest on any tax due for that year. The process involves specific steps to verify your identity and may influence how you ultimately submit your return.

Filing a Current Year Return Before a Prior Year Return

The IRS processes tax returns as they are received, meaning a 2021 return will be accepted and processed even with a pending 2020 return. The agency’s preference for sequential filing is based on practicality, as data from a prior year can directly impact the current year’s return. For instance, a 2020 return might include a capital loss that could be carried over to reduce taxable income in 2021. Similarly, an overpayment on a 2020 return could have been applied as a credit toward your 2021 estimated taxes.

Filing out of order can complicate these carryover items. If you file your 2021 return first and later file a 2020 return that establishes a carryover loss or credit, you may need to amend your 2021 return to claim those benefits.

How to File Your Current Year Return

When preparing to file your 2021 tax return without a filed 2020 return, the primary obstacle you will encounter is the identity verification process for electronic filing. Tax software requires your prior-year Adjusted Gross Income (AGI) to confirm your identity with the IRS. Since your 2020 return was not filed, the IRS has no AGI on record for you for that year.

The Prior-Year AGI Requirement

To successfully e-file, you must address the prompt for your 2020 AGI. The IRS directs taxpayers in this situation to enter “$0” (zero) as their prior-year AGI. This signals to the system that you did not file a return for the previous year, allowing the identity verification step to proceed. It is important to use this specific figure; entering any other number, or leaving the field blank, will likely cause the e-filed return to be rejected.

Submission Methods

Using the “$0” AGI figure allows you to use standard e-filing services, which is the fastest and most common submission method. Simply input zero when the software asks for your prior year’s AGI and complete the rest of the filing process as usual.

Alternatively, you can choose to file a paper return. By printing and mailing your completed 2021 Form 1040, you bypass the electronic AGI verification requirement entirely. You would fill out the tax forms, sign them, and mail them to the IRS service center designated for your geographic area. While this method is slower, it is a valid alternative if you encounter issues with the e-filing system.

Addressing the Unfiled Prior Year Return

Filing your 2021 return does not resolve the obligation to file your 2020 return. That return must be filed separately and as soon as possible. The IRS can assess penalties for both failure to file and failure to pay. The failure-to-file penalty is 5% of the unpaid tax for each month or part of a month that a return is late, capped at 25% of your unpaid tax. The failure-to-pay penalty accrues at a rate of 0.5% per month on the unpaid balance.

Beyond penalties, failing to file a prior year’s return can mean forfeiting a potential refund. Taxpayers have a three-year window from the original due date of the return to claim a refund. The deadline to claim a refund for the 2020 tax year passed in mid-2024, so any refund you were owed for that year is now permanently lost. You may also miss out on specific credits, such as the Recovery Rebate Credit related to pandemic-era stimulus payments, which must be claimed on the relevant year’s return.

To file the delinquent 2020 return, you must use the forms and instructions for that specific tax year. You will need to gather your 2020 income documents, such as W-2s and 1099s, and complete the appropriate Form 1040. Prior-year returns cannot be e-filed through most consumer software, so you will likely need to print and mail the completed return.