Overpayment of taxes from the from prior year

Forum|Forum|3 years ago
September 16, 2023
8 replies
58 views

The IRS sent me a notification that the over payment of taxes I asked to apply to the following year was off by I think 40.00. That still leaves me with a significant credit of over 4,000. But should I just override the incorrect amount on this year's return or do I have to amend something? I have no idea what would need amending as they didn't say what the issue was.

Best answer by VolvoGirl

Okay, so just to clarify this was my 2021 return and I filed the extension for my 2022 return due Oct 15,2023.

Are you saying to go in TT and change the amount of credit for 2022 when I start the 2022 return, and make it what the IRS says it should be according to their notice so it will be correct for the 2022 return?

Yes. If it is applying your last year's refund to this year and you need to remove it or change it.....

Go to

Federal Taxes

Deductions and Credits

Then scroll way down to Estimates and Other Taxes

Other Income Taxes - Click the Start or Update button

Next page scroll down to 2021 Refund Applied to 2022

Click Start or Update and then delete the amount

fanfare

Level 15

On your tax return, enter the correct amount of refund applied to this year, not the wrong amount. Or,

use your larger amount and IRS will reduce it again

if you owe that may result in interest and penalties.

you need to know the exact dollar amount of reduction by the IRS.

If you look at your IRS account at IRS.gov, it will tell you what credits you have.

@dianejaye

Mike9241

Level 15

@dianejaye if you override you will not be able to e-file.

Mike9241

dianejayeAuthor

Level 2

I don't electronically file, and I don't want to so that's not at all my concern. I just found the actual notice and they are saying I miscalculated my self-employment tax and they changed the amount and if I don't agree to contact them. So now I'm guessing I should just override it on the next return and put the corrected amount owned in. Pleas advise. Thank you.