How to fix filing taxes with income reported in wrong year (US taxes)

This happens more than you might think! Since the income was received in 2024, it should indeed be reported on your 2024 tax return (which you'll file in 2025), not your 2023 return. You'll need to file an amended return (Form 1040-X) for your 2023 taxes to remove that income. The form allows you to explain the reason for the amendment - simply state that you mistakenly included 2024 income on your 2023 return. When you file your 2024 taxes next year, you'll include that income where it belongs. The good news is that you'll likely get a refund for the taxes you overpaid on your 2023 return. Just be aware that it can take the IRS 16+ weeks to process amended returns these days.

I went through almost the exact same situation last year with some investment income! After trying to figure it out myself online, I eventually used taxr.ai (https://taxr.ai) to help sort it out. You upload your tax documents and it analyzes them to spot issues like reporting income in the wrong year. It flagged my mistake right away and gave me step-by-step guidance for fixing it. The tool also helped me draft the explanation for my amended return, which I was nervous about since I didn't want to trigger an audit. Ended up saving me a ton of stress and probably some money too since I got back what I'd overpaid.

I wanted to follow up about my experience using taxr.ai after seeing it recommended here. I was in a similar situation with misreported income and decided to give it a try. The analysis tool immediately flagged where I had double-reported some 1099 income across two years. What really helped was that it showed me exactly which numbers needed to change on my 1040-X and even helped me draft the explanation for Box 3. Made the whole process much less intimidating. Just got my refund for the amendment last week—took about 14 weeks total but everything went through correctly. Definitely worth checking out if you're dealing with income reported in the wrong year!

When I had a similar issue trying to file an amended return, I spent HOURS trying to get through to the IRS for guidance. After being on hold forever and getting disconnected twice, I tried https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes! You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful and walked me through exactly how to fill out the 1040-X for income reported in the wrong year. They explained that it's a common mistake and gave me tips for making sure the amendment was processed correctly. Saved me so much frustration compared to the DIY approach I was trying before.

Just wanted to update after trying Claimyr that I recommended above. I was SUPER skeptical about it actually working, but I was desperate after spending literally 3 days trying to get through to the IRS about my amended return situation. It actually connected me to an IRS rep in about 35 minutes (not quite the 20 they advertised but WAY better than my previous attempts). The agent confirmed exactly how to handle income reported in the wrong year and explained the specific codes I needed to use on my 1040-X to make sure it was processed correctly. I've already submitted my amendment and they even gave me tips on how to track its progress. For anyone dealing with this income misreporting issue, getting direct guidance from the IRS was incredibly helpful. Never thought I'd say this, but talking to the IRS directly cleared up all my confusion!

I made a similar mistake but in the opposite direction - I didn't report some income on the right year and got a CP2000 notice. One tip I haven't seen mentioned: make sure to calculate and claim any interest you're owed on your overpayment when you file the 1040-X! The IRS is required to pay interest on overpayments. Also, if your state tax was affected by this mistake, don't forget you'll probably need to amend your state return too after the federal amendment is done.

Don't feel foolish - the tax system is complicated! One thing to consider: was this rental income ACTUALLY earned in 2024, or was it payment for the 2023 rental period that just happened to be paid in January? If it was payment for December 2023 rental that was just paid in January, some might argue it actually belongs on 2023 taxes depending on your accounting method (cash vs accrual). Might be worth clarifying this point.

You're definitely not alone in making this mistake! I had a similar situation with some freelance income last year. One thing that really helped me was keeping detailed records of exactly when the income was received versus when it was for. In your case, since you received the rental payment on January 3rd, 2024, it should indeed go on your 2024 return regardless of what rental period it covered (assuming you use cash basis accounting like most individual taxpayers). The 1040-X process is pretty straightforward once you get started. Make sure to clearly explain in Part III that you're removing income that was mistakenly reported in the wrong tax year. I'd also recommend making copies of everything before you mail it in - the IRS has been pretty slow with processing amendments lately. One small tip: if this was a significant amount of income that affected your tax bracket or other deductions, double-check that removing it from 2023 doesn't create any other issues with things like the Earned Income Credit or other income-based calculations.