Where to apply a refund to next year's tax liability

Some taxpayers may want to apply a portion of the overpayment to next year’s taxes. Entering an amount indicates the taxpayer is electing to apply all or a portion of the current year’s overpayment to next year’s estimated tax.

To apply the Federal refund in Tax Processors Plus Online, from the Federal Section of the tax return (Form 1040) select:

• Payments & Estimates
• Apply Overpayment to Next Year's Taxes
• Amount of Overpayment to apply to next year

To apply the State refund in Tax Processors Plus Online, from the state return menu select:

• Payments
• Indicate the amount of state refund that you would like to apply to your next year state taxes

Note: Each states menu varies, however in each state the menu line will include the word "Payments"

If you elected to have all or a portion of your refund amount from your prior year return applied to the current year, you will need to enter the information into the program to calculate your return correctly.

To enter the amount applied from the prior year in Tax Processors Plus Online, from the Federal Section of the tax return (Form 1040) select:

• Payments & Estimates
• Federal Estimated Tax Payments
• Amount Applied from Prior Year Refund

Note: After the due date of the return has passed, you can't change to having the refund paid to you instead of having it applied to your next years estimated tax.