How to handle possible refunds from filing previous years tax returns?

[sher5625]

The situation is that I'm currently working on preparing and filing tax returns for 2016, 2017 & 2018. I also currently have tax liabilities from earlier years filings.

So when preparing the tax filing for 2016 and if it shows that I should be getting refund from both a federal and state, do I then enter those refund amounts when I prepare my tax filing for 2017 tax returns? Also, My understanding is that I would not actually be getting the refunds as both federal and state would use it towards my previous tax liabilities. But I need to know how to handle those calculated refunds for tax files of subsequent year. I believe I will have the same situation when I prepare tax returns for 2017 and expect a refund (that will probably be withheld to pay existing tax liabilities, but how I would handle the "refund" amounts on the 2018 tax return.

Thanks in advance for any help/advice.

[BarbL · Accepted solution]

Refunds are reported in the year they are actually received, so there is no adjustment on the returns you are currently filing.  The refunds would be received this year, and be reported on your 2019 filing next year.