Can I Apply My Refund to Next Year's Taxes?

Yes — instead of receiving a check, you can elect to apply all or part of your federal tax refund as a credit toward your next year's estimated taxes when you file your return. This is especially useful for self-employed individuals who make quarterly estimated payments — a carryover refund can satisfy one or more quarters' payments. You make this election by indicating the carryover amount in the appropriate line on your return. Keep in mind that once you elect to carry the refund forward, you generally can't change your mind and request it as a check instead. If you end up overpaying again next year, you can carry the amount forward again or take a refund at that point.