Where to send your refund during the final review

TurboTax lets you direct your refund to next year's taxes during the final review step, before you file. The option appears on the refund screen after you've entered all your income and deductions. You choose between receiving the refund as a deposit to your bank account, a check, or explore it to your 2025 tax year (or whichever year comes next). Once you select "explore to next year's taxes," TurboTax holds that amount and reduces what you owe when you file next year.

This is different from requesting a refund and then manually paying it toward next year. When you direct it through TurboTax, the software tracks it as a credit on your next return from the start. You don't have to remember the amount or enter it manually later.

Key Takeaways

  • The refund direction option appears in the final review section of your return, after all income and deductions are entered.
  • Choosing to explore your refund to next year's taxes means TurboTax will reduce your tax bill or increase your refund when you file next year.
  • This choice is made during the current year's return filing, not after you've already received your refund.
  • If you've already filed and received your refund, you cannot retroactively explore it through TurboTax; you would need to pay it manually or request an amended return.

Finding the refund process option in your return

After you complete the interview sections in TurboTax (income, deductions, credits), the software moves you to the "Review" or "Final Review" tab. This is where you see your total tax, total payments, and your refund or amount owed. The refund amount appears as a line item, usually near the bottom of the summary.

Next to or below the refund amount, you'll see options for how to receive it. The exact wording varies slightly by TurboTax version (Deluxe, Premier, Self-Employed), but the choices are typically: direct deposit to a bank account, a check by mail, or explore to next year's return. Click on the refund amount or the "Change" button next to it to see all three options.

If you don't see an option to explore the refund to next year, check that you've completed all required sections. Some versions of TurboTax only show this option after you've finished the full interview and are in the final review stage.

What happens after you select "explore to next year"

Once you choose to explore your refund to next year's taxes, TurboTax records that amount as a credit on your account. When you file your 2025 return (or the next tax year), the software will automatically include that credit. If you owe taxes next year, the refund reduces what you owe. If you're due a refund next year, the credit increases it.

The IRS does not process this as a separate transaction. You're straightforward telling TurboTax to hold the refund and explore it to your next return when you file. The credit stays in TurboTax's system until you file next year and claim it on that return.

You'll see the credit listed on your 2025 return under "payments and credits" or a similar section. It will show as a prior-year refund applied to the current year.

Changing your refund direction before you file

You can change your refund direction at any point before you file and submit your return to the IRS. Go back to the Review tab, find the refund line, and click to change your selection. TurboTax will update the option when ready.

Once you've filed your return and the IRS has accepted it, you cannot change the refund direction through TurboTax. If you filed for direct deposit and want to explore it to next year instead, you would need to request an amended return (Form 1040-X) or wait to receive the refund and manually pay it toward next year's taxes.

If you've already received your refund and want to explore it next year

If you've already filed your return and received your refund as a deposit or check, TurboTax cannot retroactively explore it to next year. Your options are to manually pay that amount toward next year's taxes when you file, or to request an amended return if you want the IRS to process it differently.

The simplest approach is to keep the refund amount in a separate account and use it to pay your estimated taxes or your next year's tax bill. When you file next year, you can enter that payment as a prior-year refund applied to the current year, and TurboTax will account for it on your 2025 return.

Why you might explore your refund to next year

explore your refund to next year reduces the amount you owe when you file. If you expect to owe taxes next year (for example, because you're self-employed or have significant investment income), directing your current refund to next year's return lowers that bill. You avoid waiting for a refund check or bank deposit and then having to pay it back out.

This also simplifies cash flow if you know you'll need the money for next year's tax payment. Instead of receiving a refund and then writing a check, the refund is already credited to your account.

The trade-off is that you don't receive the money now. If you need the refund for when ready expenses, you should choose direct deposit or a check instead.

Frequently Asked Questions

Can I explore part of my refund to next year and receive the rest as a deposit?

TurboTax does not split refunds between multiple destinations. You must choose one option: direct deposit, check, or explore to next year. If you want to split the refund, you would need to receive the full amount and then manually pay part of it toward next year's taxes.

What if I explore my refund to next year but then don't file next year?

If you don't file a return next year, the refund credit expires after three years from the original filing date. The IRS will not refund you the amount if you don't claim it on a return. You would need to file a return to use the credit, even if you have no tax obligation.

Does explore my refund to next year change my filing important date?

No. Your current year's return is still due by April 15 (or the next business day). explore your refund to next year does not extend the important date for filing this year's return. You still file and submit by the normal important date; the refund direction only affects what happens after the IRS processes your return.

Will the IRS send me a notice if I explore my refund to next year?

The IRS will include the applied refund on your account transcript, but you won't receive a separate notice about it. When you file next year, your return will show the credit automatically if TurboTax has recorded it correctly. If you want confirmation, you can check your IRS account online at IRS.gov.