If your state tax account shows a credit or a positive balance, that's money the state is already holding for you. This article explains where these credits come from, why we can't apply one to a future filing, and how to get the money back.
Where a state tax account credit comes from
A state tax account credit usually comes from an overpayment or an adjustment made by the sales tax authority after an amended return
For example: You originally paid $10,000 in sales tax for a filing period. You later file an amended return showing that you only owed $9,000. If the state accepts the amendment, it may apply the $1,000 difference as a credit to your tax account.
Can Numeral apply my credit to a future filing?
No. We can't apply a state tax account credit to a future filing. That money is already with the state, and it's separate from the tax we calculate and remit on your regular returns. To get it back, you'll need to request a refund.
How to request a refund
You have two options:
Ask us
Message our team through the messaging widget in your dashboard with:
The state
The amount of the credit
Where youâre seeing the credit (for example, a state notice or your state portal)
Weâll let you know whether we can submit the refund request for you and what documentation the state requires.
Go directly to the state
Contact the state tax authority and follow its process for requesting a refund of the account balance.
đ” Every state handles refunds differently. Some require a specific refund application, while others require an amended return or additional documentation. Because of this, we typically suggest clients contact the tax authority directly. This can reduce the back-and-forth needed to get the refund process started.
đŹ Questions? Reach out to our team anytime via the messaging widget in your Numeral dashboard.