Overypayment of Taxes
February 21, 2015 10:01 AM   Subscribe

How to record a federal and state overpayment of taxes in 2013 when that overpayment was applied to 2014 taxes.

I decided to do my own taxes this year using H&R Block's software. Up to now I had always had an accountant do it but I'm tired of paying 800 bucks for that, Anyway, in the summary letter the accountant sent me for last year's taxes he noted that I had an x dollar overpayment on federal taxes which would be applied to 2014 and an x dollar of state overpayment which will be applied to 2014. So now I can't figure where that info goes on my 1040 or on some other form in the H&R Block software. I can edit the forms it generates. So for federal, where do I record this information? If you are familiar with NY State tax forms, where do I do it on state?
posted by spicynuts to Work & Money (4 answers total) 1 user marked this as a favorite
 
For your federal return, Form 1040 line 65 -- "2014 estimated tax payments and amount applied from 2013 return."

I don't have the H&R Block software but it will probably ask somewhere if you paid any estimated tax payments during 2014. The overpayment is treated as an advance payment of taxes just like a quarterly estimated tax payment.

I assume that your state return will also have a place for entering estimated tax payments.
posted by JackFlash at 10:36 AM on February 21, 2015


You should also verify what your account told you about the amount of overpayment. Look at your 2013 return on line 75. That shows the exact dollar amount of overpayment carried over to your 2014 return as reported to the IRS, which will cross check that number.
posted by JackFlash at 10:50 AM on February 21, 2015


The state overpayment - if you itemized - is usually a taxable refund on the federal 1040 and a deduction in the same amount. It gets a little weird if your refund was attributable to a payment made after 12/31 of the year the refund was for.
posted by jpe at 12:46 PM on February 21, 2015


The state overpayment - if you itemized - is usually a taxable refund on the federal 1040 and a deduction in the same amount.

That would only be the case if you had previously deducted the overpayment. That is unlikely in this case. Typically the accountant would only deduct the actual amount of state taxes due in 2013. The overpayment is irrelevant.

You may be referring to a case in which you later amend a state tax return which results in a refund which means you also have to amend your federal tax deductions. That is not the case here.
posted by JackFlash at 1:08 PM on February 21, 2015


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