Why Consider Overpaying Your Taxes?

When it comes to paying your tax bill, it’s understandable if you want to be cautious. For some, that means preparing their taxes early in the season to avoid a rush as the tax deadline approaches. For others, it might mean purposefully making an overpayment of taxes.  

If you’re concerned that your calculations might be low or have other reasons for wanting to overpay your taxes, you can increase your payment to be on the safe side. To figure out how much to add, you can round up to the nearest hundred or nearest thousand. 

What Happens If You Overpay Your Taxes

If you overpay your taxes, the IRS will simply return the excess to you as a refund. Generally, it takes about three weeks for the IRS to process and issue refunds. 

Prefer not to receive a refund? You can choose to get ahead on the following year’s payments and apply the overpayment to next year’s taxes.

What if you made an overpayment of taxes, but didn’t mean to do so?  It’s possible that you realize at a later date that you missed a deduction or credit that would have lowered your tax liability or resulted in a refund. If that’s the case, you can receive money back by filing an amended return as long as it’s within the allowable timeframes. 

Related Topics

Related Resources

IRS Letter 3179C – Refund Offset to Treasury Offset Program – Nontax Debt

All or a portion of your tax refund was taken to pay non-tax debt. Learn more about IRS letter 3179C from the tax experts at H&R Block.

Tax Filing Extension Deadline | H&R Block

Do you need more time to file taxes? Review these time-sensitive tax pro tips to prepare for the tax filing extension deadline. Read more from our pros on the H&R Block blog.

IRS Letter 257C – We Corrected Your Name or Taxpayer Identification Number

The discrepancy between your name and your Taxpayer Identification Number has been corrected. Learn more from the tax experts at H&R Block.

Estimated Tax Form 1040ES

Do you need to file estimated taxes each quarter? Learn more about quarterly tax payments and get tax answers at H&R Block.