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 Topics

Related Resources

Installment Agreement for Business

Read the IRS definition of an installment agreement for businesses and get more insight from the tax experts at H&R Block.

IRS Letter 566D – Initial Contact Letter

Learn more about letter 566D, why you received it, and how to handle an IRS audit with help from the tax experts at H&R Block.

IRS Letter 3164 – Notification of Third Party Contact

The IRS may contact third parties about your tax liability. Learn more about IRS letter 3164 from the tax experts at H&R Block.

IRS Letter 2268C – Request for Information/Delinquent Return for a Deceased Taxpayer

The IRS is requesting information or unfiled returns. Learn about IRS letter 2268C and how to address it with help from the tax experts at H&R Block.