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

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Related Resources

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Form 8863

The tax experts at H&R Block outline how students and parents can file Form 8863 and document qualified expenses. Read about Form 8863 here.