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Level 3
posted Apr 9, 2022 6:32:23 PM

Amount You Want Applied to Your 2021 Estimated Tax

Hello, 

In my 2020 tax return, I selected the option to apply the $765 amount that was overpaid to be applied to 2021 estimated taxes. 

 

In October 2021, a $462.61 refund was received from the United States Treasury with no support other than Austin 12/2020 Tax Refund 30 written on the lower left hand corner of the check.  No other correspondence was received from the IRS related to calendar 2020.

 

As I complete my 2021 return, should I still assume that I applied $765 from my last years return - or do I need to subtract the $462.61 and only consider the net amount as having been applied to the 2021 taxes?  

 

Thanks

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1 Best answer
Expert Alumni
Apr 11, 2022 6:15:26 AM

Yes, that is confusing.  As you said you may have applied the $765 to the first-quarter estimates, and they returned the $456 as a duplicate payment.

 

The bottom line, use the $765 as the first quarter estimate.

2 Replies
Level 3
Apr 9, 2022 7:56:47 PM

ADD'L INFO for original question:

 

I just realized the $462.61 they refunded appears to be the 2021 Q1 estimated payment I made of $456 + $6.61 interest, total $462.61.  Why would they refund my Q1 2021 payment for $456?  Was it because I applied my 2020 $765 to Q1?  I did make the Q1 2021 payment of $456 late...would they have refunded it because of that?

 

Does this mean I can consider the $765 as a payment for 2021, but I guess I cannot use the $456 payment they refunded?    This whole thing confused me as to why they did this?

Expert Alumni
Apr 11, 2022 6:15:26 AM

Yes, that is confusing.  As you said you may have applied the $765 to the first-quarter estimates, and they returned the $456 as a duplicate payment.

 

The bottom line, use the $765 as the first quarter estimate.