I am doing my taxes with a popular tax software. I am getting a return amount that is larger than the actual amount of federal taxes withheld from my paycheck. I have not submitted my 1040 yet because I don’t want to raise a red flag and/or be wrong about this amount. I double checked all my numbers and itemizations (prop tax and mortgage insurance). Please help!!!
Can my tax refund be larger than my federal income tax withheld amount?
28
Apr
Lucy Lu
April 28, 2010 at 12:07 pm
Of course it can, with credits, dependents and exemptions, you can get a lot more than you put in.
spalmer
April 28, 2010 at 12:28 pm
Yes.
tro
April 28, 2010 at 1:09 pm
you might have the EIC credit, the make work credit, several credits that result in more refund than you had withheld
Lauren F
April 28, 2010 at 1:37 pm
If you have a child and qualified for the earned income tax credit or child tax credit, then yes, your refund could be higher than your income tax withheld. Check the credits section of the tax software to see what it is applying.
If your deductions are high enough, it is possible that with your exemptions and deductions you have little to no taxable income, (see what the tax software is reporting as taxable income on line 43), and then the various credits that might apply to your situation (look on lines 48, 49, 51, 63, 64) could be enough to offset the taxes and give you a refundable credit.
If your situation will remain largely the same next year, go to your payroll office at work and adjust your W-4 form to have less withheld in taxes so you get more of your own money each week, rather than having to wait for a refund.
one4mygirls
April 28, 2010 at 1:54 pm
Yes, If you qualify for the earned income credit, if you go to college there is a 1000 tuition credit, if you purchased a home you could get 8000 back…. so yes, you can.
Teresa