Question
How can my refund be more than the federal withholding on my W-2?
Answer
This usually happens when some credits you receive are refundable.
Examples of refundable tax credits include:
- Earned Income Credit (EIC)
- Additional child tax credit
- Part of the American Opportunity Credit — Form 8863
- Net Premium Tax Credit
Related Resources
IRS Letter 3016 – Innocent Spouse Relief Preliminary Determination
The IRS has made a decision about your innocent spouse claim. Learn more about letter 3016 and how to address it with help from the experts at H&R Block.
IRS Letter 2904 – Request for Information
The Taxpayer Advocate Service is requesting information from you. Learn more about IRS letter 2904 from the tax experts at H&R Block.
IRS Notice CP298 – Intent to Seize up to 15% of Your Social Security Benefits
Learn about IRS Notice CP298 and how to address an IRS bill for unpaid taxes. Get help from the tax experts at H&R Block.
Trust Fund Recovery Penalty (TFRP)
Does your business have unpaid payroll tax? Read the IRS definition of a Trust Fund Recovery Penalty (TFRP) and get insight from the experts at H&R Block.
