09 Aug I overpaid my estimated taxes. Can I get a refund now?
Q. I typed an additional zero on my estimated taxes. How do I claim a refund now?
— Big oops!
A. That’s an unfortunate accident.
Here’s how estimated taxes work.
If you expect to owe $1,000 in federal income taxes, then you are required to pay in the lesser of 100% of the prior year’s federal income tax (110% for if your income is over $150,000) or 90% of your current year’s tax liability, whichever is less, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
These payments may be through withholdings or quarterly estimated tax payments or a combination of both, he said.
“If you overpaid your taxes, you will receive a refund when you file the current year’s income tax returns,” Kiely said. “Unfortunately, I do not believe there is any way to receive a refund before you file your income tax returns.”
Your overpayment can also count toward other estimated payments you’re supposed to make throughout the year, so perhaps you won’t need to send any more checks. So may be your overpayment isn’t all bad news and you won’t have to make other payments this tax year.
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This story was originally published on Aug. 19, 2021.
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