I forgot to finish filing my taxes last year. I owed about $470, this year I am getting back $4800, can I pay my tax bill from last year with it or do I file elswhere?

[sampsonmines · Accepted solution]

First you will need to file your prior year return, and mail it in so that the state or federal taxing authority knows how much it is owed. Although, they will eventually determine what they think they are owed if you do not file.  If you file your current year return, it does not necessarily mean they will reduce your current year return by the amount, although they can come after their refund. If you do not have the means to pay last year's return you may want to e-file your current year's return, then mail the prior year return and send a check when you get paid. 

[johnny-crow]

This is what I was hoping to do. I was just worried that they would hold my current refund due to the owed amount for 2015. I will file this years and then when I have the money to pay 2015, I will file it. Just not sure if I can do that on here or if I have to do it by hand.