2024 IRS overpayment processing error

[bartleby]

I had an overpayment this year, and as in the past, I applied some of it to next year's estimated taxes and requested a refund of the remaining overpayment. However, the IRS refunded my entire overpayment. I checked my Turbo Tax return. The refund I expected shows correctly on 1040/35a, and 1040/36 shows the amount I wanted applied to next year's taxes.  I then used the IRS "check refund status" to see if there might have been a problem with the transmitted data. When I used the full overpayment amount on the identification/validation screen I received an error message that my information did not match the IRS information. When I specified my expected partial refund amount, it showed me the refund status, which indicated the entire overpayment would be refunded. Finally, I went to the IRS site. My 2024 return transcript showed the same 1040 information I see in Turbo Tax. My IRS 2025 account transcript shows a credit for the amount I wanted applied to next year's taxes. I assume the IRS will detect the error and remove the credit, but I've never encountered this issue. I'm only posting this to see if someone else has had the same problem, or can explain why this might have happened.

[MonikaK1]

You can change the amount of refund applied to another year or other payments by going to Deductions & Credits, Other Income Taxes. Locate the item under Other Income Taxes for the change you want to make. There are line items you can change for payments with extension, refunds applied, and other payments.

It happens sometimes, when a taxpayer designates a refund to be applied to the following year, that the entire amount doesn't come over to the next year - either because the IRS made a change to the return, or the IRS or another government agency took part of the refund to pay another debt, or the taxpayer amends the return. It's often safer to cover your estimated taxes either by withholding or quarterly estimated payments.

Please see this help article for more information about applying your refund to next year's taxes.

[bartleby]

Thanks for the response, but either I am not understanding your response, or I did not state my situation clearly. Using fabricated numbers, below, for the $1,200 overpayment on my 2024 return:

I expected a $200 refund, with $1,000 applied to my 2025 taxes.
I received a $1,200 refund. In addition, I have a $1,000 credit for my 2025 taxes.

[CatinaT1]

You will need to contact the IRS for information. It might be easiest to set up an account with them.

IRS Individual Online Account  

• Taxpayers with a Social Security number or an Individual Taxpayer Identification Number can create or access their IRS Individual Online Account to get information they need to file their return.
• With an IRS Individual Online Account, people can:
• View balance owed, payment history and schedule payments.
• Cancel scheduled payments.
• Get transcripts.
• View or create payment plans.
• See digital copies of some IRS notices.
• View key data from their most recently filed tax return, including adjusted gross income.
• Validate bank accounts and save multiple accounts, eliminating the need to re-enter bank account information every time they make a payment.
• View, approve and electronically sign power of attorney and tax information authorizations from their tax professional.