If you are just starting your return, and you're being asked if the income you reported on last year's return applies to 2016, the purpose is to transfer over your W-2 and 1099 information so that you don't have to re-enter the basic information. If you say yes, then you can go back and add 2016 specific information to the W-2 or other document. If you say no, then you can input your 2016 information from scratch.
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