What happens if I overpaid my Federal / State taxes (US) ?

I did my taxes myself and I suspect that I might have overpaid taxes. There were some stock option transactions which were complicated and i might have mis-interpreted them while filing my returns. Will Uncle Sam happily pocket the extra dollars or will the IRS get back and ask me for a refile or tell me that there was an overpayment ?

Since all the transactions and income I get also get forwarded to the IRS, they would have an estimate of the total tax I owe, total tax already withheld and the balance. If my payment is more than the balance as per their records, I am curious as to what they would do

Pls advise, Thx

If you are not audited--and it is likely you won't be--the IRS won't give you a refund unless and until you ask for it.

If you were audited, it is possible for the IRS to discover the error and give you a "rebate," which is different from a refund. A rebate results from a re-calculation of your tax by the IRS showing that you paid too much tax.

But since you probably won't be audited, you need to prod the IRS to give it to you. The only way to do that is to file an amended return (Form 1040X if you're a typical U.S. resident human taxpayer). You will just do your return over again, but this time without the errors you made the first time.

You should do the amended return sooner rather than later.

The IRS is all too happy to let you know when you have underpaid your taxes, but not surprisingly very hesitant to let you know when you have overpaid.

Your best option would be to file an amended return (1040X). Take your time with this and make sure you got everything you missed (or misinterpreted) the first time. Send it in and you should get the difference of your overpayment (if there was one) back.

No, the likelihood of the IRS returning your overpayment on their own is extremely low.

I recommend you go to a professional tax preparer and have them examine your records to determine if you did in fact overpay. If you did, they can help you file form 1040X to get a return of your excessive payment.

Go to a professional tax preparer and have them look at your return. Some of the online companies have an option to let a professional look at return--for a fee. Check it out.

IRS will give $0 basis to stocks sold if you don't put in correct acquisition dates, making a larger tax liability.

You have three years to file an amended return. It may be a very good idea to go to a professional tax preparation service and have them do a "second look." There may be additional errors that would make it even more worthwhile to amend your return.

The IRS will happily pocket your money. If you want to see it again you should file an amended tax return (1040x).