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An "overpayment" means that the total tax payments that you made in 2023 in the form of withholding from a paycheck, or other payment, and any other payments that you made such as "Estimated Payments" plus any prior year refunds made to you in 2023, all totaled to more than you now owe for 2023. You can choose to have all of the overpayment refunded to you by transfer to your bank account (fastest method) or paid to you by a check mailed to you (slowest method) or alternatively you can choose to have some or all of that overpayment applied as payments toward your 2024 taxes.
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