Some taxpayers may want to apply a portion of their overpayment (refund) to next year’s tax liability. Entering an amount indicates the taxpayer is electing to apply all or a portion of the current year’s overpayment to next year’s estimated tax.
To apply a portion of the current year's federal refund to next year's tax liability, from the main menu of the tax return select:
- Payments & Estimates
- Apply Refund
- Amount of Overpayment to apply to 20xx - Enter the amount of the current year refund to be applied to next year's tax liability.
To apply a portion of the current year's state refund, from the main menu of the state tax return select:
- Payments (This may vary state to state)
- Indicate the amount of state refund that you would like to apply to your next year state taxes
Note: State menus vary, however in each state the line will include the word "Payments"
If all, or a portion of a refund from the prior year return was applied to the current year, the amount should pull forward to the following year's return. To manually enter the amount applied from the prior year's return, from the main menu of the tax return select;
- Payments & Estimates
- Estimated Tax Payments made for 20xx
- Amount Applied from Prior Year Refund
Note: If a refund is applied to next year's estimated tax liability, it cannot be changed after the current year return is filed. This cannot be amended.