How can I apply my state refund to next year?

1. Open your tax return.
2. Search for estimated tax payments with the magnifying glass tool on the top of the page. 
3. Click on the Jump to estimated tax payments link at the top of the search results.
4. Click on Start next to 2021 refund applied to 2022 state taxes.
5. Follow the on-screen instructions. 

To apply your NY refund to next year:

1. Log in to your account.
2. Select State Taxes. 
3. Revisit NY return, continue until you get to the screen Additional Tax Situation
4. Scroll down to Prepare Estimated Tax vouchers FOR 2022 (IT-2105
5. On the next screen answer Yes tp apply your refund to next year

On the New York resident tax return, Form IT-201, the amount of your refund that you want to apply to next year is on line 79.

I read your response for NY satate taxes. It does not seem to work for Virginia taxes.

Thanks.

Please follow the instructions below to apply all or part of your Virginia refund to your 2022 taxes:

1. Open your return.
2. Click on State on the left-hand side.
3. Click Edit next to Virginia.
4. Continue through the return until you see the screen, Your 2021 Virginia taxes are ready for us to check
5. Click Edit next to Other Situations.
6. Click Start or Revisit next to Make Estimated Tax Payments for Next Year
7. Answer yes to the question Do you want to start the Virginia estimated taxes section now?
8. On the screen Choose Your Payment Option, choose 100% of your actual 2021 tax.
9. On the screen Apply Overpayment?, select the amount you want to apply to next year.
10. Continue through your return.

@scapoor2

I do not see any option for applying Wisconsin 2021 overpayment to my 2022 estimated taxes. This has changed 

It is well hidden in the WI state program under estimated taxes. Follow these steps:

Go to WI

Continue to Other Tax Situations

Scroll down to Other Forms section

Select Estimated Taxes for next year, start/ edit

Do you want to pay estimated taxes, YES

No

Continue, continue, continue

yes

continue

Select overpayment option 

continue

Amy

Tried this and it totally didn't work.  There was never a section called Additional Tax Situation

Strange that it's so much harder than Federal.

(Turbotax 2021 Home and Business, New York)

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@ericgyeh wrote:

Tried this and it totally didn't work.  There was never a section called Additional Tax Situation

Strange that it's so much harder than Federal.

(Turbotax 2021 Home and Business, New York)

 

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Continue past the screen Let's Review Your New York Numbers and there will be the screen Additional Tax Situations

Thanks for the response.

I can't check this now since I already filed yesterday (the deadline), but I am pretty sure it wasn't there.  I clicked through the entire NY section again (based on this post) and did not see this.  Perhaps because I had already reviewed once?  IMO, this should be on the payment screen.  Instead of only giving options for direct deposit or check by mail, why not give us the option to apply to next year there?

I will revisit this discussion in 2023, I guess.

I didn't receive the refund and had it applied to next year's 2022 estimated tax payment, will it still be added as income as a tax refund for 2021?  I never received the refund?

Thanks,

L.C.

You may not have physically received the state refund but you received the benefit of the refund.  It is being used to reduce taxes owed the following year.  For example, it is the same as if you received the refund in your hand but chose to pay future taxes with it instead of depositing and using for something else.

State Income Tax refunds may be taxable income for federal purposes for individuals who itemized their deductions on their federal tax return in the previous year.

@Anonymous

Thank you for these instructions, this worked for a RI return!

This doesn't make sense. The poster is asking about applying this year's refund (2022) to next year's taxes.

@karinm1971 It makes sense.   There are plenty of people who know that their tax situation for the upcoming year will be different, and they expect to owe tax for the next time instead of receiving a refund.  So they choose to put some or even all of their current refund toward the tax they will owe for the next year.  Line 36 of a Form 1040 is where the IRS lets you enter the amount of a current refund amount that you want to apply toward the next year's tax.

Oh you're right. I thought that the reply was referring to retroactively doing that, which makes no sense. (Been spending too much time doing weird past years' taxes!)

Karin