Applying Your Tax Refund to Next Year's Tax Return
Instead of getting a tax refund this year, you can choose to apply all or part of the overpayment to next year's tax return.
- If your refund is small, you may want to apply the entire amount to next year's tax return for the sake of convenience.
- If your refund is larger than usual, you may want to apply part or all of it to next year's taxes, especially if you're anticipating a higher tax liability in the future (e.g. no longer able to take certain tax credits or deductions, higher income, change in filing status, etc.).
- If it's getting close to April 15 and you pay estimated taxes, consider applying part or all of the overpayment to your first quarter estimated tax payment, which is due on April 15. This can prevent or reduce future underpayment penalties.
However you decide to handle this year's tax refund, you'll need to decide before you file your return.
Note: It is not possible to apply your federal refund to your state tax return, or vice-versa.
Click a link below for instructions.