Drake Tax - 1040: Apply Overpayment to Next Year
Article #: 10493
Last Updated: October 18, 2024
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.
If there is an overpayment available, use the ES screen to 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 Drake Tax - Printing Estimate Vouchers and Entering Estimates Paid for details.
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. |