What does "Do you want to apply your refund to next year's return?" mean

[VolvoGirl]

It means do you want the IRS or state to keep your refund as an estimated payment for 2022 return next year?  Most people want to get their refund now.  So say no.

[fanfare]

You can apply not all but a only a part of your refund.

If you need to make estimated tax payments, this can be helpful.