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
Top IRS audit triggers: 8 tax mistakes to avoid
What triggers the IRS to audit a tax return? Learn how common tax mistakes and errors can be a red flag and affect your chances of IRS issues.
What are the current tax rates?
Find the current percentages for federal income tax rates, capital gains tax rates, Social Security tax rates and more from the tax experts at H&R Block.
The Complete Guide to the W-2 Form
The key to understanding your w-2 form is decoding the boxes and numbers. Learn how to read your w-2 form with this box-by-box infographic from H&R Block.
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.