I overpaid my taxes last year by $1,694 and chose to have $900 of that applied to my next years return.?
Whoa Lynda: If you pay too much in taxes they send YOUR money back to you. No reporting, no nothing. This is Federal! If you deduct state taxes(on Sch A) say $2000 and then you have a refund of $1000 you have to account for the refund when you declared $2000. This calculation is done by looking at Sch A and if the income taxes where the deduction or did you use the sales tax deduction instead. Read the instructions for Sch A as this is not an easy concept to grasp. If you get a state refund you will account for the refund on next years return. This advice was prepared based on our understanding of the tax law in effect at the time it was written and it applies to the facts that you provided. Click on my profile to read more.
