If a client wants to apply a refund against next year's taxes, how do I enter this in Drake Tax?
First, make sure that you have an overpayment available to be applied to next year.
- For example, check the DD screen to confirm that a direct deposit is not set up for the federal or state return involved.
Use the ES screen (see Screen Help and help screens for the individual data entry fields). Select an applicable OP Code. As needed, indicate what amounts you want applied to a particular voucher. If estimates are not being generated automatically, additional entries may be required; see Related Links below.
These are the available overpayment codes:
| Overpayment Code
|
Result
|
|
(blank)
|
Refunds entire overpayment.
|
|
A
|
Applies overpayment to vouchers in order until completely applied.
|
|
R
|
Applies overpayment to first voucher only; refunds the remainder.
|
|
E
|
Makes estimate equal to overpayment.
|
|
O
|
Applies overpayment to the next year estimate; does not print any vouchers. This method also works when no estimated tax is due. (You must leave the ESTIMATED TAX CODE blank for this option to work.)
|
|
4
|
Applies overpayment to all four of vouchers equally.
|
| N |
Applies overpayment to next year but the overpayment does NOT get subtracted from the estimates. |
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