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Apply refund to next year's estimated tax

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Intuit

Apply refund to next year's estimated tax

This article will help you apply an overpayment (or refund) shown on the return to next year's estimated taxes, and understand how the program applies your overpayment.

To apply an overpayment to estimated taxes:

  1. Go to the Input Return tab.
  2. On the left-side menu, select Payments, Penalties & Extensions.
  3. Click on 20XX Estimated Tax (1040-ES).
  4. In the Apply overpayment to 20XX field, select the appropriate option (1, 2, 3, 4, 5, 6, or 7).
    • Alternatively, leave this field blank and enter the Amount of overpayment to apply to 20XX, instead.

Additional Information

  • If you use the Amount of overpayment to apply field, the program applies the overpayment to each voucher, in order, until the amount is exhausted, and prints the estimate vouchers for any quarter not credited in full.
  • Option 1 - Applies the overpayment to the first estimated tax payment, refunds any excess, and prints vouchers for remaining quarters not credited in full.
  • Option 2 - Applies the overpayment to the first and second estimated tax payments in order, refunds any excess, and prints the vouchers for remaining quarters not credited in full.
  • Option 3 - Applies the overpayment to the first, second, and third estimated tax payments in order, refunds any excess, and prints the vouchers for remaining quarters not credited in full.
  • Option 4 - Applies the overpayment to the first, second, third, and fourth estimated tax payments in order, and refunds any excess.
  • Option 5 - Divides the overpayment by four and applies evenly to all quarters, refunds any excess overpayment, and prints vouchers for any quarter not credited in full. When a quarter has passed and the taxpayer has not paid an estimate, the program applies the refund evenly to only the remaining quarters.
  • Option 6 - Applies the entire refund. When the calculated estimated tax for next year is greater than the refund, the program prints estimates for the remaining balance. When the refund is greater than the calculated estimated tax, the program applies the entire refund and does not print estimate vouchers.
  • Option 7 - Sets next year's estimated tax equal to the overpayment on this year's return. This overrides the automatic calculation of estimate vouchers, and no vouchers will print.

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