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

Underpayment Penalty

If you didn't pay enough taxes during the year, the IRS may charge you a penalty. Learn more from the tax experts at H&R Block.

Partial Pay Installment Agreement

Get the facts from H&R Block about the IRS payment plan called a partial pay installment agreement, which considers your full financial picture.

Direct Deposit Tax Refund Delays

Issues with your bank account could cause tax refund delays. Learn more about direct deposit tax refunds from the tax experts at H&R Block.

Federal Tax Updates

Find tax law updates and get tax answers at H&R Block.