Will I get refunded if I overpaid my back taxes from last year?
So I'm 20 and dealing with back taxes from 2023 that I couldn't pay on time. I finally managed to pay what I owed, but it was after the penalties and interest had already kicked in. I wasn't exactly sure how much extra I would need to pay for those penalties, so I estimated and sent in $225 (about $50 more than what the original letter said I owed). Now I'm wondering if the IRS will automatically refund me if I overpaid the back-taxes or if that money just disappears into the void? I've been searching online but can't find a clear answer about overpayments specifically for back-taxes plus penalties. Does anyone know if that extra money gets returned to me or applied to something else? It's not a huge amount but as a 20-year-old every dollar counts right now.
20 comments


Hiroshi Nakamura
Yes, you'll get your money back if you overpaid your back taxes. The IRS will either refund the overpayment or apply it to any other tax you might owe. Since you're 20, they'll most likely just issue you a refund directly. When you pay more than what you owe in back taxes (including the penalties and interest), the IRS processes this as a credit to your account. They'll usually automatically issue a refund check for the excess amount within a few weeks. However, if you have any other outstanding tax debt or unfiled returns, they might keep it and apply it to those balances first. Also, if you're going to be filing another tax return soon, you could request they apply it as a credit toward your next tax return.
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Isabella Costa
•How long does it typically take for the IRS to process an overpayment and issue a refund? I'm in a similar situation but my overpayment was around $180. Also, do I need to contact them or fill out any forms to get the refund, or is it truly automatic?
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Hiroshi Nakamura
•The IRS typically processes these refunds within 4-6 weeks from when they apply the payment to your account and recognize the overpayment. It's generally automatic - you don't need to contact them or fill out additional forms unless months pass with no refund. If you're concerned about the status of your refund, you can check your account online through the IRS website or call them directly. Just keep in mind that $180 might take the same amount of time as a larger refund - the IRS processes aren't usually faster for smaller amounts.
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Malik Jenkins
I went through something similar with back taxes last year and found this tool that really helped me understand my situation better. I was confused about my overpayment and penalties, and ended up using https://taxr.ai to help me sort through everything. It basically analyzed my IRS notices and payment history, then explained exactly what I owed, what I had paid, and what would happen with my overpayment. Saved me hours of frustration trying to understand all the tax jargon and calculations. The best part was it showed me how the penalties and interest were calculated, so I knew exactly where my money was going.
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Freya Andersen
•Does it work with any tax documents? I've got a couple of CP2000 notices and I'm not sure if I'm calculating my response correctly. Would this help me figure out if I actually owe what they say I do?
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Eduardo Silva
•How accurate is it actually? I'm always skeptical of these tax tools because they sometimes give generic advice that doesn't apply to specific situations. Did it actually explain YOUR specific situation or just give general info?
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Malik Jenkins
•It works with most IRS notices including CP2000s. I uploaded my notice and it broke down exactly what the IRS was claiming, where the discrepancies were, and my options for responding. Super helpful for understanding what they're actually asking for. Regarding accuracy, I was skeptical too at first. But it's not giving generic advice - it specifically analyzes the documents you upload and explains your personal situation. In my case, it identified that the IRS had actually miscalculated my penalties by about $75, which I was able to dispute. It showed me exactly what paragraphs of tax code applied to my specific situation.
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Eduardo Silva
Just wanted to update everyone. I decided to try that https://taxr.ai tool the other commenter mentioned and wow, I'm actually impressed. I uploaded my notice showing I'd overpaid my back taxes by about $138, and it explained exactly what would happen - that the IRS would automatically process a refund but it might take 6-8 weeks. The tool also showed me how to track my refund and what to do if it didn't show up after that timeframe. What I really liked was how it explained the different penalties that had been applied to my account - there were actually THREE different types that I didn't even realize! Definitely cleared up my confusion about why the amount I owed was so different from what I expected.
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Leila Haddad
If you're having trouble getting through to the IRS to check on your refund status, I'd recommend trying https://claimyr.com - it's been a game changer for me. I spent weeks trying to get through to the IRS about my overpaid back taxes and kept hitting dead ends. Claimyr basically holds your place in the IRS phone queue and calls you back when an agent is about to answer. I was super frustrated trying to check on my overpayment refund, but with this I got through to a real person in about 45 minutes instead of spending hours on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed my overpayment would be refunded and even expedited the process when I explained my situation. Saved me so much time and stress.
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Emma Johnson
•How does this actually work? Do they just call the IRS for you or what? I'm confused about how a third party service can get you through faster than just calling yourself.
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Ravi Patel
•Yeah right. Nothing gets you through to the IRS faster. I've been trying for MONTHS to get someone on the phone about my overpayment from last year. I'll believe it when I see it - sounds like just another way to take money from desperate people.
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Leila Haddad
•They don't call the IRS for you - they use technology to navigate the IRS phone system and hold your place in line. When they're about to connect with an agent, they call you and connect you directly. The IRS doesn't know you're using a service - they just think you've been waiting on hold the whole time. I was definitely skeptical too before trying it. I spent over 2 hours on multiple days trying to get through myself with no luck. The frustrating part is that the IRS phone system often disconnects you after a long wait due to "high call volume." This service prevents that from happening and only charges if you actually get connected to an agent.
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Ravi Patel
OK I need to apologize and eat my words. After posting that skeptical comment, I was desperate enough to try Claimyr and it actually worked. Got through to the IRS in about 30 minutes after trying for literally months on my own. The agent confirmed that my overpayment of back taxes ($275) had been processed but was stuck in their system waiting for review. She was able to release the hold while I was on the phone and said I should see my refund in 2-3 weeks. Would NEVER have gotten this resolved without actually talking to someone. For anyone wondering about the original question - yes, you absolutely get your money back if you overpay back taxes, but sometimes you need to nudge them to process it if it's been more than 6 weeks.
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Astrid Bergström
Just an FYI - the IRS should send you a letter explaining any adjustments they make to your payment. So if you sent in that extra amount, they'll eventually send a notice showing how much was applied to taxes, how much to penalties, how much to interest, and what's left over. The leftover amount will either be refunded or applied to other taxes you might owe. If you have an online account with the IRS, you can also check your account transcripts to see if the overpayment is sitting there as a credit. Look for a code 846 with a negative amount next to it - that would indicate a refund being issued.
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PixelPrincess
•This is super helpful! Which transcript should I be looking at? I tried checking mine but there are so many different ones (account transcript, tax return transcript, etc.) and I couldn't figure out where to find information about my payment.
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Astrid Bergström
•You want to look at the Account Transcript, not the Return Transcript. The Account Transcript shows all activity on your account including payments, credits, and refunds. The code 846 is specifically the "refund issued" code, but you might also see code 826 for the payment you made and other codes for penalties and interest. It can be confusing to read at first, but once you understand the basic layout, it's actually the most accurate way to see what's happening with your tax account. The far right column shows the dollar amounts - positive numbers are amounts you owe, and negative numbers are credits to your account.
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Omar Farouk
Can I just say how messed up it is that a 20 year old has to deal with back taxes in the first place? The tax system is so complicated even for simple situations. The IRS should make things more clear about overpayments and just automatically refund money that's not owed without making people chase after it.
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Chloe Martin
•The system is definitely frustrating, but to be fair, they do automatically refund overpayments in most cases. The problem is their processing times are so slow, and the automated systems don't always work perfectly. When I overpaid my taxes 2 years ago, I got the refund without doing anything - it just took almost 3 months.
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Omar Farouk
•That's good to hear they eventually make it right, but 3 months is ridiculous for something that should be pretty simple to process. A 20-year-old might really need that money right now, not 3 months from now. I still think the whole system needs to be more transparent and user-friendly.
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Victoria Jones
I completely understand your situation - dealing with back taxes at 20 is stressful enough without worrying about whether you'll get your overpayment back! The good news is that yes, the IRS will refund you that extra $50 (or however much you actually overpaid once they calculate everything). Here's what typically happens: The IRS will apply your $225 payment to your original tax debt, then to penalties, then to interest. Whatever's left over becomes a credit on your account that they'll automatically refund to you, usually within 6-8 weeks of processing your payment. Since you estimated high to be safe, you were actually being smart - it's better to overpay than underpay and get hit with additional penalties. Just keep an eye on your mailbox for either a refund check or a notice explaining how they applied your payment. If you don't hear anything after 8 weeks, that's when I'd recommend calling them to check on the status. The fact that you're being proactive about this at 20 shows good financial responsibility. Don't stress too much - you'll get your money back!
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