You get a refund if you overpaid your taxes in the previous year (through your employee withholding which is in box 2 of your W-2). Your refund is calculated by taking the amount that your employer withheld from your income for federal taxes minus your federal income tax for the year (based on your taxable income for the year). Your taxable income may include other income besides your wages on your W-2.
Review the TurboTax article: What Is Taxable Income? for more details.
Credits reduce the amount your federal income tax, so make sure you go through the Deductions and Credit Section to ensure you get the highest possible refund. Review the TurboTax article: What Are Tax Credits? for more information.
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