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 1862 – Initial Contact Letter – Substitute for Return Program
The IRS did not receive your tax return, so they proposed taxes due (substitute for return). Learn more about IRS letter 1862 from the experts at H&R Block.
IRS Notice CP01S – Message About Your Identity Theft Claim
Learn more about notice CP01S, why you received it, and how to handle the notice with help from the tax experts at H&R Block.
IRS Notice CP166 – Insufficient Funds Available for Monthly Payment
There was not sufficient funds in your checking account to cover your monthly payment. Learn more about IRS notice CP166 from the tax experts at H&R Block.
