You will receive an overpayment amount as a refund. The IRS won't be sending out a notification to let you know you made an overpayment on taxes.
For issues related to duplicate payments, it would be wise to contact the IRS department that handles billing issues (1-800-829-1040) or the IRS taxpayer advocate service for more complex issues (1-877-777-4778).
You get an overpayment credit when your tax payments exceed what you owe. You'll automatically receive a refund of the credit. However, you can ask us to apply the credit as an advance payment towards next year's taxes instead of sending it to you as a refund.
Alternatively, taxpayers can schedule electronic funds withdrawal for up to four estimated tax payments at the time that they electronically file their Form 1040. Taxpayers can make payments more often than quarterly. They just need to pay each period's total by the end of the quarter.
If you don't pay enough tax through withholding and estimated tax payments, you may have to pay a penalty. You also may have to pay a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.
Pay all of your estimated tax by January 16, 2024. File your 2023 Form 1040 or 1040-SR by March 1, 2024, and pay the total tax due. In this case, 2023 estimated tax payments aren't required to avoid a penalty.
If you overpay your taxes, the IRS will simply return the excess to you as a refund. Generally, it takes about three weeks for the IRS to process and issue refunds. Prefer not to receive a refund? You can choose to get ahead on the following year's payments and apply the overpayment to next year's taxes.
If the Adjusted Gross Income (AGI) on your previous year's return is over $150,000 (over $75,000 if you are married filing separately), you must pay the lower of 90% of the tax shown on the current year's return or 110% of the tax shown on the return for the previous year.
People who aren't having enough withheld. The IRS says you need to pay estimated quarterly taxes if you expect: You'll owe $1,000 or more in federal income taxes this year, even after accounting for your withholding and refundable credits (such as the earned income tax credit).
If you miss the deadline for a quarterly tax payment, the IRS automatically charges you 0.5% of the amount that you didn't pay for each month that you don't pay, up to 25%. To find out how much you owe up to this point, you can use a tax penalty calculator.
It doesn't matter if you pay too much or too little one quarter; you can't get the money back from the IRS until you file your tax return. That's one reason why it's so important to get your estimated tax payments right. You may have a better use for that money now – not next year.
You can also modify or cancel your payment up to two business days before your scheduled payment date. You can access your federal tax account information through a secure login at Your Online Account.
Generally speaking, it's better to overpay your taxes rather than underpay. A tax overpayment will result in a refund at the end of the year, which means your taxes are paid in full, and you receive the difference as a refund.
Most commonly, double taxation happens when a company earns a profit in the form of dividends. The company pays the taxes on its annual profits first. Then, after the company pays its dividends to shareholders, shareholders pay a second tax.
If you didn't pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax.
Failure to pay proper estimated tax
If you owe more than $1,000 when you calculate your taxes, you could be subject to an underpayment of estimated tax penalty. To avoid this you should make payments throughout the year via tax withholding from your paycheck or estimated quarterly payments, or both.
Estimated tax payments are typically due on April 15, June 15, and September 15 of the current year and then January 15 of the following year. You can skip the final (January 15) estimated tax payment if you will file your return and pay all the tax due by February 1.
In most circumstances an employer has the right to claim back money if they've overpaid someone. They should contact the employee as soon as they're aware of the mistake.
For example, if you are single and have no dependents, you would pay about $30 in taxes on a $300 paycheck. If you are married filing jointly and have two dependents, you would pay about $45 in taxes on a $300 paycheck.
Estimated tax refund dates are based on the IRS acceptance date and are not guaranteed by eFile.com or the IRS. Depending on IRS security procedures, the tax refund date could take up to 21 days after the IRS tax return acceptance date or as early as 7 days via the bank direct deposit method.
Answer: Generally, you must make estimated tax payments for the current tax year if both of the following apply: You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
Yes, at the end of your state return, we'll ask if you want to make estimated tax payments and help you calculate the amount. We'll even generate the payment vouchers for you to print along with your return.
If you're at risk for an underpayment penalty next year, we'll automatically calculate quarterly estimated tax payments and prepare vouchers (Form 1040-ES) for you to print.
Problem: The government charges taxpayers interest for underpayments of estimated tax, but it does not pay taxpayers interest for overpayments of estimated tax. In both perception and reality, this incongruity is one-sided and unfair.