The typical time to receive your refund depends on how you filed your taxes: Your refund may be reduced to pay prior taxes owed. Your refund may also be reduced to pay a past due debt such as child support, federal agency nontax debt or state income tax. The Bureau of the Fiscal Service (BFS), which. What happens if I overpaid my taxes? If you’ve overpaid your taxes, the IRS will issue you a refund when you file your tax return for the year. This is the easiest way to know that you’ve paid more into taxes than necessary. How can I avoid overpayment on my taxes? For W-2 wage earners, you determine the amount of income tax withholding from your paycheck by completing and submitting Form. Recovering overpaid taxes: learn when to amend a return or file a claim for refund, plus deadlines, forms, and practical steps to reclaim money from the IRS. You can take the cash back as a refund, or you can tell the IRS to hold that money and treat it as a head start on next year’s tax bill. That second option is what “applying a refund to next year’s estimated taxes” means, and it lives on a single line of Form 1040. A tax refund is a reimbursement from the government when you've paid too much in taxes during the year. Here are some options for what to do with that money. For people who pay estimated taxes, overpaying in the first quarter means you’ll need to wait all the way until the following April to get your excess payment back, which isn't exactly ideal. How to avoid overpaying your estimated taxes There are a few strategies that can help you avoid giving the IRS more money than you have to. The Treasury Offset Program allows the government to withhold money from certain federal payments to pay for these debts.If you have questions about your refund amount, you can call the IRS at 800-829-1040 or your local IRS office. Can I have my federal tax refund directly deposited into my bank account? The short answer is that unfortunately, you'll need to wait until you file your tax return to get that overpayment back as a refund. The IRS doesn't have a mechanism to return estimated tax payments mid-year, even if you've clearly overpaid. The good news is that the IRS does pay interest on overpayments in some situations. The back of the form includes space for you to explain your changes—whether you’re owed an additional refund or have to pay additional taxes. You’ll also need to include your original 1040 form with your submission. Amended tax returns get complicated, so you might want to hire a tax pro to help. Understanding when you will receive the difference if you have overpaid on your estimated taxes is a common concern for taxpayers. Estimated taxes are prepayments made quarterly to cover your annual tax liability, but overpayments can happen for various reasons, such as miscalculations or unexpected deductions.