Withholding of Tax on Nonresident Aliens and Foreign Entities›For use in 2026›Depositing Withheld Taxes
Adjustment for Overwithholding
2026 Publ 515 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
What to do if you overwithheld tax depends on when you discover the overwithholding.
Overwithholding discovered by March 15 of the fol- lowing calendar year. If you discover that you overwithheld tax under chapter 3 or 4 by March 15 of the following calendar year, you may use the undeposited amount of tax to make any necessary adjustments between you and the recipient of the income. However, if the undeposited amount is not enough to make any adjustments, or if you discover the overwithholding after the entire amount of tax has been deposited, you can use either the reimbursement procedure or the set-off procedure to adjust the overwithholding.
For more information on the reimbursement procedure and set-off procedure, and what to do if you discover the overwithholding after March 15 of the following calendar year, see Adjustment for Overwithholding in the Instructions for Form 1042.
Tip: If March 15 is a Saturday, Sunday, or legal holiday, the next business day is the final date for these actions.
Get a plain-English answer with a citation back to this text.
Ask AI about this code