How to claim prior overpayment credit while filing tax return ?

[ahmadka2]

Hi. Last year I had to file an amendment for my 2020 tax return, through which I owed the IRS some additional taxes. I paid this additional amount to the IRS around May last year, but then there was an issue on IRS's side where they didn't detect my payment right away. They processed my amendment though, and so since they thought I haven't paid the additional tax, they ended up asking me for additional interest payment, which I also paid. Anyhow, couple of months down the line in November last year (about 4-5 months after I made the additional tax payment due to the amendment), the IRS realized it had wrongfully charged me additional interest once they processed and posted my earlier amendment payment. Once they realized this, they put a credit of $6.57 on my 2020 account transcript. I assume this is a credit I have with the IRS which I can use in my 2022 tax return now. How do I do this in TurboTax ?

Note that my 2021 account transcript doesn't show any credit, but that's because my 2021 tax return finalized before the issue I posted above.

[hbl3973]

ahmadka2,

If you haven't received a 1099-INT from the IRS (US Treasury) for that $6.57, then it is pretty clear that you haven't yet received a check for that amount.  You are a cash basis taxpayer so will only report that interest once you actually receive it.  Bottom line: you don't report it on this 2022 return but will almost surely report it on your 2023 return from a 1099-INT.

[Mike9241]

you probably can't use a 2020 credit on your 2022 return.   the IRS should have sent you a check.