Federal

  • A refund can be applied to next year’s tax return. This is not recommended for our clientele:
    • If the taxpayer doesn’t bring a prior year paper return, or the current year return has no Carryforward, there’s a good chance the taxpayer won’t remember that an amount was applied, or how much.
    • If there was any change to the return – either by the IRS or by an amended return, the amount on the printed Form 1040, Page 2, as being applied, will probably have been affected. The taxpayer may not remember such a change.
  • If the taxpayer insists, proceed as follows: 
    • Go to the Payment Apply Refund page [Federal Section > Payments & Estimates > Apply Overpayment to Next Year's Taxes] to enter the amount to apply to next year, which can be less than the full refund.

California

  • To apply some or all of a state refund to next year’s state tax return, go to the Apply your State Refund to your 20xx tax return page [State Section > Payments > ....]
    • This is not recommended, as discussed in the preceding paragraph.

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