When taxpayers reach Lines 34 through 36 on IRS Form 1040, they are nearing the final stretch of the federal income tax return. These lines are critical—they determine whether the IRS owes you a refund or if you still owe taxes. Understanding how these amounts are calculated helps avoid confusion, anticipate your tax outcome, and ensure accuracy. This guide explores how Lines 34 through 36 work and what each line represents in the refund and payment process.
Overview: The Flow of Form 1040
Form 1040 is designed to summarize your total income, apply deductions and credits, calculate your total tax liability, subtract payments made, and ultimately determine your refund or tax due. After reporting all income, deductions, and credits, you arrive at:
- Line 33: Total payments (includes federal tax withheld, refundable credits, and estimated tax payments)
- Line 24: Total tax (from tax computation + additional taxes like self-employment tax)
Lines 34 to 36 compare the total tax with total payments to calculate whether you are due a refund or must make a payment.
Line 34 – Refund
Line 34 = Refundable Amount (if Line 33 > Line 24)
If your total payments (Line 33) exceed your total tax liability (Line 24), you’re entitled to a refund. The amount of the refund is calculated as:
Line 34 = Line 33 – Line 24
This means you have paid more tax throughout the year (via withholding, estimated payments, or refundable credits) than your actual tax liability. Refundable credits included in Line 33 may consist of:
- Earned Income Tax Credit (EITC)
- Additional Child Tax Credit
- American Opportunity Credit (partially refundable)
- Premium Tax Credit
- Recovery Rebate Credit (if applicable)
The refund listed on Line 34 can either be directly deposited into your bank account or mailed as a paper check. If you choose direct deposit, you must complete Lines 35a, 35b, and 35c.
Line 35 – Direct Deposit Information
Line 35a – Routing Number
Enter the 9-digit routing number for your bank or financial institution.
Line 35b – Type of Account
Check the appropriate box to indicate whether the account is a checking or savings account.
Line 35c – Account Number
Enter the bank account number where the IRS should deposit your refund.
If you do not complete these lines or if there is an error, the IRS will send your refund via paper check to your mailing address.
Splitting Your Refund (Optional)
If you want to split your refund between multiple accounts (e.g., checking and savings), you must complete and attach Form 8888 – Allocation of Refund. This is useful for saving, investing, or purchasing U.S. Savings Bonds directly from your tax refund.
Line 36 – Amount You Owe
Line 36 = Line 24 – Line 33 (if Line 24 > Line 33)
If your total tax liability exceeds the total payments made during the year, you owe the IRS money. Line 36 shows the remaining balance due. You are required to pay this amount by the tax filing deadline (typically April 15) to avoid penalties and interest.
You can make the payment by:
- Direct Pay via the IRS website
- Electronic Funds Withdrawal (if filing electronically)
- Credit or debit card (via authorized processors)
- Mailing a check or money order with Form 1040-V
If you are unable to pay the full amount immediately, you may request a payment plan through Form 9465 – Installment Agreement Request.
What Happens If You Overpay or Underpay?
Overpayment
If Line 33 exceeds Line 24, the IRS will refund the overpaid amount unless you request to apply it to next year’s estimated tax. This is often beneficial for self-employed individuals or those making quarterly payments.
Underpayment
If you owe tax, pay as soon as possible. The IRS charges:
- Failure-to-pay penalty: 0.5% of the unpaid tax per month
- Interest: Accrues daily on the unpaid balance
- Failure-to-file penalty: 5% per month if the return is late and unpaid
Tips for Maximizing Refunds or Minimizing Tax Due
- Ensure all eligible refundable credits are claimed accurately
- Double-check withholdings with Form W-4 early in the year
- Track estimated payments and apply overpayments to next year if helpful
- Use direct deposit for faster refund processing
- Plan for self-employment or investment income by making timely estimated payments
Conclusion
Lines 34 through 36 of Form 1040 provide the final verdict of your tax return—whether you’ll receive a refund or need to pay more. By understanding the math and purpose behind these lines, taxpayers can better prepare for tax season, plan their finances more effectively, and avoid unexpected surprises. Whether you’re due a refund or owe the IRS, accuracy is key. Take the time to verify all entries before filing, and consult a tax professional if your return involves multiple income sources, credits, or deductions.
