Can I apply my refund to next year’s estimated taxes?

As a U.S. taxpayer, you know that taxes are generally paid throughout the year. When you’ve paid more than you owe, you can typically expect a refund for that year. If that’s the case, you can apply your refund to your estimated taxes for next year.

If you choose to use your refund toward your estimated tax payment, the refund amount will apply to your first estimated tax payment until all of the refund has been used.

Why apply your refund to your IRS estimated tax payment?

While applying your refund to your IRS estimated tax payment is by no means a requirement, you might want to if you owe a first quarter estimated tax payment.

If you know you’re going to have income that isn’t subject to withholding (for example Self-Employment income, investment income, and some retirement income) for a given year, you will be required to make estimated tax payments to stay in good standing with the IRS. As you likely know, underpayment on your estimated taxes can lead to a costly underpayment penalty.

Essentially, when you apply your refund to your estimated taxes, you help give yourself a head start on your payments for the 2024 tax year. Not sure you want to use all of this year’s refund for next year’s estimated tax?  You can always choose to apply only part of your refund to your IRS estimated tax payment.

Learn more about estimated taxes

Have additional questions about estimated taxes? We can help. You can find information about IRS estimated tax payments from us online. You can also get help when you visit one of our H&R Block Offices or chat with one of our tax pros while preparing your return online.