How to apply a refund to a new estimated individual return in Lacerte

Entering a Refund on a New Return:

This refers to applying an overpayment from a prior year's return to the current year's estimated taxes.

1. Locate the Overpayment Section: In your tax software, look for a section related to "Payments," "Estimated Tax Payments," or "Prior Year Overpayment." It might be on the main 1040 input screen or a separate worksheet.
2. Enter the Amount: Enter the amount of the overpayment that you want to apply to the current year's taxes. Be very careful to enter the correct amount. This information should be on your prior year's tax return (Form 1040).
3. Check Form 1040: After entering the overpayment amount, check the relevant line on Form 1040 (often a line related to estimated tax payments or credits). The software should automatically reflect the applied overpayment, reducing your tax liability or increasing your refund.

Checking if the Carryover Amount is Correct:

This refers to verifying that the amount being carried over from a prior year is accurate.

1. Review Prior Year Return: Pull up the prior year's tax return. Locate the line that shows the overpayment amount. This is the amount that should be available to carry over.
2. Compare to Current Year Input: In your current year's tax software, go back to the section where you entered the overpayment (as described above). Compare the amount entered there to the overpayment amount on the prior year's return. They must match for the carryover to be correct.
3. Check Form 1040: Again, check the relevant line on Form 1040. The software should use the correct carryover amount in its calculations. If it doesn't match the prior year's return, you'll need to correct the input in your tax software.