Taxes: What to do with overpayments or underpayments?

ClosedWhy do I have an overpayment?

The most common causes of tax overpayments and underpayments are:

ClosedIf an overpayment appears because of historical taxes
  • When you entered your prior tax payments, we noticed that you have overpaid your taxes so far this year.
    • If you still have at least one payroll to run in the same quarter, you don't need to do anything.
    • If the quarter with the overpayment is over, you need to resolve the overpayment.
  • You have entered your prior tax payments, but you have not yet entered tax information from your prior paychecks. (That is, you have told us about the taxes you have paid, but you have not yet told us about the tax liabilities you have incurred. Our system thinks you have overpaid your taxes.)

    Once you have entered your pay history, your tax liability will no longer be negative (unless you have in fact overpaid your taxes).

What to do with overpayments

Depending on the tax agency's requirements and your preference, you can resolve an overpayment by:

Doing this tells us what you did with the overpayment amount, so we can properly track your tax payments and remove the tax payment reminder.

If you've already contacted the IRS or your state tax agency to take care of the overpayment, you can follow these instructions to record your actions in Intuit Online Payroll and to remove the tax payment reminder.

ClosedFor federal tax overpayments
  1. Go here.
    (Or choose Taxes & Forms > Pay Taxes.)
  2. Review the list of federal tax payments on the Pay Taxes page. An overpayment appears on the Pay Taxes page as a negative amount.
  3. For the overpayment, click Resolve Overpayment.
  4. Click what you want to do with the overpayment.
    • For federal withholding (941/944, including federal income tax, social security, and medicare), you can get a refund or apply the overpayment to the next tax period.
    • For federal unemployment (940, also known as FUTA), you can get a refund.
  5. Click Save.
  6. Contact the IRS to get a refund or apply the overpayment to the next tax period.
ClosedFor state tax overpayments

Resolve state unemployment insurance (SUI) overpayments

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  1. Go here.
    (Or choose Taxes & Forms > Pay Taxes.)
  2. Review the list of SUI payments on the Pay Taxes page. An overpayment appears on the Pay Taxes page as a negative amount.
  3. For the overpayment, click Resolve Overpayment.
  4. Click what you want to do with the overpayment. Depending on your state, you can get a refund or apply the overpayment to the next tax period.
  5. Click Save.
  6. Review the resolved overpayment. The resolved overpayment appears as a negative entry in the Tax Payments report.
  7. Contact your state's tax agency to get a refund or apply the overpayment to the next tax period.
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Contact us to resolve the overpayment.

Resolve state withholding tax overpayments

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  1. Go here.
    (Or choose Taxes & Forms > Pay Taxes.)
  2. Review the list of state withholding tax payments on the Pay Taxes page. An overpayment appears on the Pay Taxes page as a negative amount.
  3. For the overpayment, click Resolve Overpayment.
  4. Click what you want to do with the overpayment. Depending on your state, you can get a refund or apply the overpayment to the next tax period.
  5. Click Save.
  6. Review the resolved overpayment. The resolved overpayment appears as a negative entry in the Tax Payments report.
  7. Contact your state's tax agency to get a refund or apply the overpayment to the next tax period.
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Contact us to resolve the overpayment.

What to do with underpayments

You can usually resolve an underpayment yourself. You can:

 

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