36 — Amount Applied to Next Year's Estimated Tax Updated for tax year 2025

What this line means

The portion of your overpayment that you want applied to next year’s estimated tax instead of receiving as a refund. This election credits the amount to your next year’s tax account as if you made an estimated payment on the first quarterly due date. Once you make this election, it is irrevocable — you cannot change your mind and get it back as a refund.

Does this apply to you?

• You are self-employed and know you will owe estimated taxes next year
• You have investment income and want to prepay part of next year’s tax
• You want to reduce or eliminate the first quarterly estimated payment you would otherwise need to make
• You prefer to keep the money working toward next year’s taxes rather than receiving a refund and writing a separate check

Easy to overlook

This election is irrevocable once your return is processed Once the IRS processes your return with an amount on line 36, that money is locked into next year’s estimated tax. You cannot later amend the return to take it as a refund instead. If your financial situation changes and you need the cash, you are out of luck. Only elect this if you are confident you will owe estimated taxes next year. ¹ [SOURCE: IRS Form 1040 instructions — Line 36]

The applied amount counts as a payment on next year’s line 26 When you file next year’s return, the amount from line 36 shows up as part of your estimated tax payments on line 26. Filers sometimes forget they made this election and leave it off next year’s return, which understates their payments and creates an apparent balance due. ² [SOURCE: General filing pattern — forgotten overpayment elections]

Watch out for this

Applying an amount to next year and then also making a full first-quarter estimated payment, resulting in overpayment for next year. If you applied $5,000 to next year and your quarterly estimated payment is $4,000, you already covered the first quarter and part of the second — there is no need to send a full $4,000 Q1 payment on top of the applied amount.

Related lines on your return

• Line 34 — Form 1040 — Overpayment; the total available to split between refund and next year
• Line 35a — Form 1040 — Refund amount; the portion you want back as cash
• Line 26 — Form 1040 — Estimated tax payments; where the applied amount appears on next year’s return