Whle doing my taxes on turbo tax it asks if I applied all or part of my 2005 refund to 2006 taxes.?

Question

What does that mean?

Answer 1

If you designated a portion of your refund last year to be applied towards any balance you might owe on the next years return. Usually the only people who do this are people who are self employed or have income from other sources where federal taxes are not withheld.

If you received the full amount of the refund that you were expecting last year, this entry would not apply to you

Answer 2

It is asking you if you told the IRS to apply all or part of any reufnd from 2005 towards your 2006 tax liability instead of getting a refund.

Wage earners rarely do that, but many self-employed folks who make estimated tax payments on Form 1040ES do roll their refunds over from year to year to keep the estimated payments as low as possible.

Answer 3

It means that instead of receiving a check for the refund from the IRS, you told them to use your refund to apply to this year's return. They should have sent you some notification about what you can deduct from your taxes because of the amount you paid (refund) at the beginning of the year. If this doesn't make sense then you probably got the refund check, right?

Answer 4

If you had a refund coming last year, you'd have been asked then whether you wanted it then, or just leave it in toward the following year's taxes. If you said yes, leave it in with the IRS, then it would be the same as if you'd had that much more withheld, or paid in quarterly estimates. TurboTax is asking you whether you told the IRS to keep last year's refund toward this year's taxes. Most likely, the answer here is NO.

Answer 5

When you filed your 2005 tax return and thought that the next year when it was going to be time to file your 2006 return you were going to owe the IRS, you would of requested IRS to apply the 2005 refund to 2006 and then you wouldn't owe so much. it was like you were paying estimated taxes.

Answer 6

Your 2006 tax return is for the artwork you probably did in 2006 in spite of the indisputable fact that it somewhat is not filed till after the top of the monetary year, it somewhat is December 31, 2006 for many persons. additionally, for many persons tax returns are no longer due till April fifteenth of right here year to permit time which you would be able to receive all the tax information you will decide on so as to report your tax return because of the fact you could no longer report your tax return till once you receive all your tax information which includes your W-2s or 1099s.