Have you ever overpaid your federal income tax bill?

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CULater
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Have you ever overpaid your federal income tax bill?

Post by CULater » Mon May 28, 2018 5:12 pm

I accidentally sent in two payments for my 2017 federal tax. I was told by IRS that they eventually catch this and return the overpayment automatically. Wondering if this has happened to anyone and whether you did get an automatic refund and how long it took.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

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jeffyscott
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Re: Have you ever overpaid your federal income tax bill?

Post by jeffyscott » Mon May 28, 2018 5:51 pm

My son overpaid once long ago, though not in the way you did. He was a teenager and had created a business and mistakenly reported all his cash flow as income or something like that, so I think he filed an amended return. When they refunded him they paid him a very good interest rate for the time (maybe 8%?). They were require to pay him the same interest rate as they charge to those who pay late, this was 10 or more years ago, don't know if things have changed.
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WolfgangPauli
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Re: Have you ever overpaid your federal income tax bill?

Post by WolfgangPauli » Mon May 28, 2018 5:57 pm

I think you file an amended return to get it back.
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johan851
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Re: Have you ever overpaid your federal income tax bill?

Post by johan851 » Mon May 28, 2018 6:03 pm

When I was in college I forgot to claim a credit that was available. I got a nice letter from the IRS informing me that I had forgotten to take it and that they had amended the return on my behalf, along with a check for something like $800. Which was a lot to me at the time.

Nice folks over there.

Turbo29
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Re: Have you ever overpaid your federal income tax bill?

Post by Turbo29 » Mon May 28, 2018 6:21 pm

Overpaid a month and a half ago. Went to put $6500 in my Roth IRA just before I filed in April and accidentally put it in my tIRA. Filed a 1040x the next week (and a state 140x). Still waiting for both refunds.

clydewolf
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Re: Have you ever overpaid your federal income tax bill?

Post by clydewolf » Mon May 28, 2018 6:37 pm

Turbo29 wrote:
Mon May 28, 2018 6:21 pm
Overpaid a month and a half ago. Went to put $6500 in my Roth IRA just before I filed in April and accidentally put it in my tIRA. Filed a 1040x the next week (and a state 140x). Still waiting for both refunds.
You may want to make a conversion to your Roth IRA of that contribution to your tIRA. But your tIRA probably has mostly tax deferred contributions and gains.

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FreeAtLast
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Re: Have you ever overpaid your federal income tax bill?

Post by FreeAtLast » Mon May 28, 2018 6:46 pm

Instead of paying my estimated federal taxes on four separate dates throughout the year, I pay them all by the first required date in April. Except this year I was distracted by a lot of issues and when I calculated the total payment, I forgot to take the new tax law revisions into account. Overpaid by at least 500 bucks. :oops:
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Turbo29
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Re: Have you ever overpaid your federal income tax bill?

Post by Turbo29 » Mon May 28, 2018 6:46 pm

clydewolf wrote:
Mon May 28, 2018 6:37 pm
Turbo29 wrote:
Mon May 28, 2018 6:21 pm
Overpaid a month and a half ago. Went to put $6500 in my Roth IRA just before I filed in April and accidentally put it in my tIRA. Filed a 1040x the next week (and a state 140x). Still waiting for both refunds.
You may want to make a conversion to your Roth IRA of that contribution to your tIRA. But your tIRA probably has mostly tax deferred contributions and gains.
The tIRA solely contained the proceeds of a rollover from a company 401K plan 20+years ago. All of my direct IRA contributions went into a Roth. Both are at Etrade and I hit the wrong account back in April when I made my 2017 contribution. Didn't notice for two weeks that I had done that.

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wander
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Re: Have you ever overpaid your federal income tax bill?

Post by wander » Mon May 28, 2018 6:48 pm

johan851 wrote:
Mon May 28, 2018 6:03 pm
When I was in college I forgot to claim a credit that was available. I got a nice letter from the IRS informing me that I had forgotten to take it and that they had amended the return on my behalf, along with a check for something like $800. Which was a lot to me at the time.

Nice folks over there.
+1. Happened to me before too. It was nice.

j0nnyg1984
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Re: Have you ever overpaid your federal income tax bill?

Post by j0nnyg1984 » Mon May 28, 2018 6:55 pm

Lots of people deliberately overpay their federal taxes in order to purchase paper savings bonds with the refund.

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Epsilon Delta
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Re: Have you ever overpaid your federal income tax bill?

Post by Epsilon Delta » Mon May 28, 2018 9:56 pm

Turbo29 wrote:
Mon May 28, 2018 6:46 pm
clydewolf wrote:
Mon May 28, 2018 6:37 pm
Turbo29 wrote:
Mon May 28, 2018 6:21 pm
Overpaid a month and a half ago. Went to put $6500 in my Roth IRA just before I filed in April and accidentally put it in my tIRA. Filed a 1040x the next week (and a state 140x). Still waiting for both refunds.
You may want to make a conversion to your Roth IRA of that contribution to your tIRA. But your tIRA probably has mostly tax deferred contributions and gains.
The tIRA solely contained the proceeds of a rollover from a company 401K plan 20+years ago. All of my direct IRA contributions went into a Roth. Both are at Etrade and I hit the wrong account back in April when I made my 2017 contribution. Didn't notice for two weeks that I had done that.
It's not too late to recharacterize the contribution to be a Roth IRA contribution. (The deadline is extended tax day. Oct 15 or so). Recharacterizing would require amending your return a second time and paying the extra tax. Personally I'd let sleeping dogs lie unless you believe the Roth is clearly and substantially better in your circumstances.

If you are interested in persuing this I'd suggest starting a new thread to avoid thread hijack.

pshonore
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Re: Have you ever overpaid your federal income tax bill?

Post by pshonore » Tue May 29, 2018 7:16 am

To answer your original question , the IRS keeps track of all payments credited to your SS# and will refund any overage automatically even if you do not enter them on your return.

FCM
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Re: Have you ever overpaid your federal income tax bill?

Post by FCM » Tue May 29, 2018 8:30 am

One year I forgot to include the January quarterly estimated tax payment as a tax payment made for the previous tax calendar year, thus actually understating in my 1040 taxes paid for that tax year and "overpaying" my taxes. The IRS caught the error and mailed me a refund based upon the taxes that I had actually paid as opposed to what I stated I had paid in my 1040. I didn't need to do an amended tax return.

mouses
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Re: Have you ever overpaid your federal income tax bill?

Post by mouses » Tue May 29, 2018 8:35 am

pshonore wrote:
Tue May 29, 2018 7:16 am
To answer your original question , the IRS keeps track of all payments credited to your SS# and will refund any overage automatically even if you do not enter them on your return.
Yes, It can take several months, but eventually things happen and a check appears.

Glockenspiel
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Re: Have you ever overpaid your federal income tax bill?

Post by Glockenspiel » Tue May 29, 2018 8:36 am

Every single year, approximately 80% of people overpay their federal income tax. I have in the past, but not within the past few years.

CULater
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Re: Have you ever overpaid your federal income tax bill?

Post by CULater » Tue May 29, 2018 9:57 am

I don't think an amended return would work for me. The return was correct, with the correct amount of tax owed. I goofed by sending two separate checks for the amount owed accidentally. So, there is nothing to amend.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

pshonore
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Re: Have you ever overpaid your federal income tax bill?

Post by pshonore » Tue May 29, 2018 10:28 am

CULater wrote:
Tue May 29, 2018 9:57 am
I don't think an amended return would work for me. The return was correct, with the correct amount of tax owed. I goofed by sending two separate checks for the amount owed accidentally. So, there is nothing to amend.
Have you gotten your refund yet? What form did you use and how did you send in the payments? Were they both clearly for Tax Year 2017?

CULater
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Re: Have you ever overpaid your federal income tax bill?

Post by CULater » Tue May 29, 2018 10:53 am

pshonore wrote:
Tue May 29, 2018 10:28 am
CULater wrote:
Tue May 29, 2018 9:57 am
I don't think an amended return would work for me. The return was correct, with the correct amount of tax owed. I goofed by sending two separate checks for the amount owed accidentally. So, there is nothing to amend.
Have you gotten your refund yet? What form did you use and how did you send in the payments? Were they both clearly for Tax Year 2017?
No, I'm waiting. I sent a 2017 1040 (paper) and mistakenly wrote two checks for payment that were included with the return. They were both cashed by the IRS. I called the IRS and was told that eventually the error will be discovered and I'll get a refund; I just wanted to know if anyone has run into this and if they actually ever did get a refund and how long it took. It's been almost 8 weeks since I mailed my return.
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

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