Applying 2023 tax refund towards 2024 taxes AND filing for an extension

[TaxPayer-2024]

We are going to have a large refund in 2023 tax year but we need more time, so we're filing for an extension. Normally, we would also start making estimated payments towards 2024 taxes with 1040ES. The first payment is due by April 15th. I'd like to use the 2023 tax refund towards 2024 estimated payments but I can only elect to do that when we file the return. If we file towards the end of the extension, we'd miss two first estimated tax payment dates (April and June). I would like not to send more cash to the IRS since they already owe us more than the estimated payments would be. And I don't want to be fined by not making timely payments. In my mind, they already have the money so we should be alright, but I'd like to hear what the pros here think. 

[Cynthiad66]

You can skip the 1st and 2nd quarter estimated payments since you will be applying your refund to 2024 taxes.  Estimated taxes are voluntary.  You will earn interest on your refund for not receiving timely.

Estimated Taxes Common Questions

[fanfare · Accepted solution]

The amount applied from refund goes toward the first April 15 payment.

If it is more than enough for the expected first payment, it is applied to the following payments until used up.

Your withholding /4 is also applied to each quarter.

@TaxPayer-2024 

[TaxPayer-2024]

Thank you both!