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February 5, 2023
Question

Received IRS statement. 2021 tax overpayment refund needs to be added to our 2022 refund. Suggestions?

  • February 5, 2023
  • 3 replies
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3 replies

VolvoGirl
Employee
February 5, 2023

Did the IRS pay interest on it?  

Enter interest from the IRS like a 1099Int and put the amount in box 1.  Enter it manually and just enter IRS for the payer.  Don't enter any other info like the address or a EIN.

 

Enter a 1099-Int  under

Federal on left

Wages & Income at top

Interest and Dividends

Interest on 1099INT - Click the Start or Revisit button

 

Don't enter a bank or broker name and don't try to import it.  At the bottom pick -  Change How I enter my Form

Then on the next screen pick I'll Type it in Myself

 

 

Critter-3
February 5, 2023

Did you get a notice for the interest the IRS paid on the 2021 refund that took longer than expected to pay out ?   If so you only need to report the interest the IRS paid and not the entire refund.

 

You would enter your IRS interest as if you got a 1099-INT form.

In the Wages & Income section, scroll down to 1099-INT and enter. See below.

  1. Type 1099-int in the search box and click search.
  2. Click on Jump to 1099-int.
  3. On the landing screen, click on I'll type it in myself.
  4. Enter your IRS interest form and continue.
  5. Enter the Institution ( Internal Revenue Service ) Name
  6. Enter your interest in Box 1 and any other information
February 6, 2023

Disregarding any issue of interest, if you want to elect to have you tax overpayment from your 2021 return applied to your 2022 federal return, follow these steps in TurboTax Online:

  1. If you don’t see 2022 TAXES in the left pane, scroll down and select the dropdown to the right of Deductions & Credits and select Let’s get startedPick up where you left off, or Review/Edit
    • Otherwise, in the left pane, select the dropdown to the right of Federal, then select Deductions & Credits 
  2. On the  Your tax breaks page, scroll down and select the Show more dropdown to the right of Estimates and Other Taxes Paid
  3. Select  Start or Revisit to the right of Income Taxes Paid
  4. On the  Income Taxes Paid page, scroll down to 2021 Refund Applied to 2022 and select Start to the right of 2021 refund applied to 2022 federal taxes
  5. Enter your 2021 federal refund applied to 2022 on the How much of your 2021 federal refund did you apply to your 2022 federal taxes? page, then select Done
Critter-3
February 6, 2023

Since it is now 2023 you cannot have the 2021 refund applied to the 2022 return ... the IRS will not see that election in time since the paper filed 2021 return will take months and months to process.