You can direct your refund to next year's taxes during the filing process, but TurboTax doesn't hold the money—the IRS sends it to you, and you choose what to do with it

TurboTax does not have a built-in feature that lets you tell the IRS to automatically apply your current refund to next year's tax bill. What TurboTax does offer is the ability to see your refund amount before you file, so you can decide whether to take it as a payment now or use it to cover taxes you expect to owe next year. The actual mechanics depend on whether you're expecting a refund this year and whether you'll owe taxes next year.

If you want your money to go toward next year's taxes, you have two practical paths: receive your refund and manually send it to the IRS as an estimated tax payment, or adjust your withholding on your W-4 so less money is withheld going forward, which reduces the refund you get this year and reduces what you'll owe next year. The second option is simpler if you have time before the end of the tax year.

Key Takeaways

  • TurboTax shows you your refund amount before filing, but cannot direct it to next year's taxes automatically—the IRS sends refunds to you, not to future tax bills.
  • If you receive a refund and want to use it for next year's taxes, you can send it to the IRS as an estimated tax payment using Form 1040-ES and the IRS Direct Pay system.
  • A simpler approach is to adjust your W-4 withholding before the end of the current tax year so you receive less refund now and owe less next year.
  • Self-employed filers and those with irregular income should use Form 1040-ES to calculate and send quarterly estimated payments instead of waiting for a refund.
  • TurboTax will calculate what you owe or are owed, but the decision to redirect money is yours to make after you see the number.

Where to find your refund amount in TurboTax before you file

As you work through TurboTax, the software calculates your refund or balance due in real time. You'll see this number in the "Summary" or "Review" section—the exact location depends on which TurboTax product you're using (Deluxe, Premier, Self-Employed, etc.), but it's always displayed before you're asked to file. Look for a box labeled "Refund" or "Amount You Owe."

Once you see the refund amount, you have the option to stop, adjust your information, or proceed to file. If you see a large refund and you know you'll owe taxes next year, this is the moment to think about whether you want to redirect that money. However, TurboTax itself cannot send the refund anywhere except to your bank account or as a paper check—you'll need to take a separate step after you receive it.

How to send your refund to the IRS as an estimated tax payment

Once the IRS deposits or mails your refund, you can send it back to them as a payment toward next year's taxes using IRS Direct Pay, which is free and takes about one minute to set up. Go to irs.gov, find the "Payments" section, and select "Direct Pay." You'll enter your refund amount, your tax year (next year), and your bank account information. The IRS processes the payment immediately and sends you a confirmation number.

Alternatively, you can use Form 1040-ES (Estimated Tax Payment voucher) and mail a check to the IRS, but this is slower and requires you to calculate how much to send. Direct Pay is faster and more reliable. When you file next year, TurboTax will ask about estimated payments you made during the year, and you'll enter the amount you sent—this reduces what you owe or increases what you're owed.

If you owe quarterly estimated taxes (because you're self-employed or have income with no withholding), you can also apply your refund to the next quarter's payment. The process is the same: use Direct Pay and specify the tax year and quarter.

Adjusting your W-4 to reduce this year's refund and next year's bill

If you still have time before the end of the tax year, the simpler approach is to change your W-4 withholding with your employer. A large refund usually means too much tax was withheld from your paychecks. By filing a new W-4, you can tell your employer to withhold less, which means a smaller refund this year and less tax owed next year. This avoids the step of manually sending money to the IRS.

To do this, ask your HR or payroll department for a new W-4 form (IRS Form W-4, "Employee's Withholding Certificate"). You can also download it from irs.gov. Fill in the form to claim additional allowances or adjust the "extra withholding" line, depending on your situation. The change takes effect on your next paycheck. If you're already deep into the tax year, the adjustment may be too small to matter, but if you have months left, it can make a real difference.

This method works best if you know in advance that you'll owe taxes next year—for example, if you have a side business or rental income. It gives you control over the flow of money throughout the year instead of waiting for a refund and then redirecting it.

What to do if you're self-employed or have income without withholding

If you don't have an employer withholding taxes (you're self-employed, a contractor, or have investment income), you can't use a W-4. Instead, you should calculate and send quarterly estimated tax payments using Form 1040-ES. TurboTax can help you calculate the amount you need to send each quarter, and you send the payment directly to the IRS using Direct Pay or by mail.

The advantage of quarterly payments is that you're already sending money to the IRS throughout the year, so you're less likely to have a large refund or a large bill at tax time. If you do end up with a refund after filing, you can still send it back as a payment toward next year using Direct Pay, but the quarterly system prevents the problem from building up in the first place.

When you file in TurboTax, you'll enter the four quarterly payments you made, and the software will calculate whether you're owed a refund or owe more. If you're owed money, you can take it as a refund or, again, send it to the IRS as a payment for the following year.

Why TurboTax can't automatically redirect your refund

The IRS does not allow taxpayers to direct a refund to a future tax year through their tax return. Refunds are paid to the taxpayer—either deposited into a bank account or mailed as a check. Once the money reaches you, it's yours to keep or redirect. TurboTax follows IRS rules, so the software has no option to say "send this refund to my 2025 taxes" on the return itself.

This is actually a protection for you: it ensures you receive your money and can use it however you need. The downside is that it requires an extra step if you want to send it back to the IRS. But that step—using Direct Pay—takes less than five minutes and costs nothing.

Frequently Asked Questions

Can I tell TurboTax to hold my refund and apply it next year?

No. TurboTax cannot hold or redirect your refund to a future tax year. The IRS sends refunds to you, not to future tax accounts. You can receive your refund and then manually send it to the IRS as an estimated payment using Direct Pay, or you can adjust your W-4 now to reduce the refund in the first place.

What if I want to use my refund to pay next year's taxes but I haven't filed yet?

You can adjust your withholding on your W-4 before the end of the year so you receive a smaller refund and owe less next year. This is the easiest option if you have time. If you've already filed, you'll need to wait for your refund and then send it to the IRS as an estimated payment.

Does Direct Pay cost money to use?

No. IRS Direct Pay is free. You enter your refund amount, your bank account, and the tax year, and the IRS processes it immediately. You'll receive a confirmation number for your records.

If I send my refund to the IRS as an estimated payment, do I need to tell TurboTax?

Yes, when you file next year, TurboTax will ask about estimated tax payments you made during the year. You'll enter the amount and the date you sent it. This ensures the IRS knows you've already paid and reduces what you owe or increases what you're owed on next year's return.

What if I'm self-employed and don't have a W-4?

Use Form 1040-ES to calculate quarterly estimated payments and send them to the IRS throughout the year. This prevents large refunds or bills at tax time. TurboTax can help you calculate the amount, and you send payments using Direct Pay or by mail.