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.

Click a link below for instructions.

• Federal returns
• State returns

Shortly after you complete the federal interview, you'll come to a screen titled Get Your Refund Now or Apply it to Next Year's Taxes. Check the specified box. On the next screen, you'll be able to designate part or all of your refund to your 2013 tax return.

You can easily revisit this screen by first clicking the Federal Taxes tab, then Other Tax Situations, under the Additional Tax Payments section click Start or Update next to Apply Refund to Next Year and then proceeding with the interview.

What if I change my mind?

Simply click the Federal Taxes tab, then Other Tax Situations, under Additional Tax Payments click Update next to Apply Refund to Next Year. Here you can undo your prior entry. (However, if your return has already been filed, this will not work.)

Many state programs have a designated screen, similar to the one shown below, where you can apply part or all of your refund. It appears towards the end of the state interview.