• New Wave Accountants

All You Need to Know About How to Reclaim an Overpaid Tax

A tax refund is money paid back to taxpayers by the IRS. It is often used to describe a refund of state, local or federal tax. Taxpayers may have received a tax refund because they paid too much tax during the previous tax year, or because the government paid them too much tax.

Now, if you want to reclaim an overpaid tax, then you have to know a few things before taking steps to do it. You will be refunded with any overpaid tax within 28 days when you submit all the important information requested for a refund.

You can get the refund from your next paycheck except for the business allowances and work expenses.

What Should You Do If You Overpaid Tax

It is important to contact the IRS immediately if you overpaid your taxes. The IRS will send you a check for your overpaid tax if you file Form 1040X, Amended U.S. Individual Income Tax Return, along with your 1040 or 1040A return. The IRS will also mail a check for your refund if you file Form 843 with your original return.

You have to file this form within three years after the date that you filed your original federal income tax return or within two years after the date that you paid the tax, whichever is later. Now, after filing the form, you can receive a refund of tax withheld, tax taken out during the next year’s tax return.

How Do I Get My Tax Withholding Back

If you want to get your tax withholding back, you have to complete and sign Form 1040X and then mail it to the IRS. The form is used for tax return amendment and for information about refunds, credits, payments and offsets.

What Happens If You Overpay the ATO

In some cases, taxpayers can have overpaid the ATO because they have too much tax withheld from their pay and superannuation, or they received too much through the tax-free threshold. In some cases, taxpayers can receive overpayments of the tax. For example, if the ATO has reduced their tax for the year due to a change in circumstance, but the taxpayer has not amended their return. Some taxpayers who have overpaid their taxes can choose to use their refund towards their next tax liability.

Do HMRC Automatically Refund Overpaid Tax

If the HMRC or HM Revenue and Customs have overpaid your tax, there is no need to worry. It will automatically refund your overpaid tax to you through your PAYE code within 28 days of your request. You just have to let HMRC know by filling out a refund form. If you are paying your income tax through PAYE and you are not getting any refund, then you can claim your refund.

However, it is important that you file your tax return and tell HMRC if you have a change in the tax liability.

What Happens If I Overpay Payroll Taxes

Overpaid payroll taxes are wages paid to workers by the government for which the worker does not have to pay the income tax. Now, if the government has overpaid your payroll taxes, you can get the refund by filing Form 941-X. However, you will have to pay interest on any amount you are holding back during the period you waited to claim the overpayment.


So, it’s quite a relief that you have learned everything about how to reclaim any overpaid tax. You can now set off to get the money back from the government. However, this is not a guaranteed process, and you will have to apply for a refund of your money.

New Wave Accounting is a team of accountants on the Gold Coast providing all types of tax services such as tax return preparation, tax advice, tax planning, bookkeeping, payroll and superannuation. Let us help you claim the overpaid tax back. Contact us to get started!

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