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Returning Member
posted Jan 20, 2023 12:32:08 PM

How do I apply my 2022 refund to the tax debt which I am paying monthly per an IRS agreement?

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4 Replies
Level 15
Jan 20, 2023 12:33:54 PM

The IRS will take care of that for you.  You do not enter anything on your tax return about it.  If you owe the IRS, they know it and they will offset your refund for the tax you owe.   You will receive a letter from the IRS a few weeks after they do that.

Returning Member
Jan 20, 2023 12:36:10 PM

Can I still file electronically?

Level 15
Jan 20, 2023 12:41:33 PM

Can I still file electronically?  Yes you can.

Level 15
Jan 20, 2023 12:42:25 PM


@ls22345 wrote:

Can I still file electronically?


Yes, file normally.  If your return claims a refund, the IRS will keep enough to satisfy the debt, and pay you the rest, although it may take a little longer for processing.  About 4 weeks after getting whatever is left as a deposit, the IRS will send a letter confirming that your refund was adjusted and your debt was cleared.

 

If your refund is less than the debt you owe, you need to keep making your on time payments.  The refund will be applied to the debt, but it won't reduce the amount you are required to pay, but it will reduce the number of remaining payments.