I just filed my taxes and with all of my deductions from schooling and medical and my child - I am actually getting more back than I paid.
About $3500 was withheld last year, but I am getting over $3800...
Is that possible??? The last thing I want to do is to piss the IRS off.
2007-02-12 06:17:40 · 3 answers · asked by Leroy Studying Law 1 in Business & Finance ➔ Taxes ➔ United States
Also, will this flag me for an audit... Not that I am too worried because I have ALL of my paperwork.
2007-02-12 06:18:23 · update #1
Yes it is possible.
It depends on your filing status and earned income. There are refundable credits that can give you more than you paid in. The 2 main ones are the Earned Income Credit and Additional Child Tax Credit.
2007-02-12 06:35:56 · answer #1 · answered by R Worth 4 · 2⤊ 0⤋
Yes it is possible. There are things called 'refundable credits' which it sounds like you have qualified for (the most common is the EIC - Earned Income Credit). These credits allow you to get back more than you have paid in.
The majority of credits are non-refundable, which means that you can get all your paid in money back but no more than that.
Count yourself as lucky if you have received a refundable credit.
2007-02-12 06:40:31 · answer #2 · answered by nova_queen_28 7 · 0⤊ 0⤋
YES, IT IS POSSIBLE! Consider yourself one of the lucky ones that not only gets all of their federal income taxes back that they paid, but also is able to get a refund due to other tax credits such as EIC and others. If you did all your math right then you have nothing to worry about. I know lots of people that get back several thousand dollars every year and even more, so don't worry about that!
2007-02-12 06:38:06 · answer #3 · answered by MarineMom 6 · 0⤊ 0⤋