If you are entering all tax forms on the same return (as you should) the tax due or refund is computed on everything.
Tax is figured on ALL your income. This amount is your "tax liability".
Next, any tax you paid, like what was withheld on your W2 is subtracted from your tax liability.
If the number is positive, (more tax was paid than your tax liability) you get a refund.
If the number is negative, (less tax was paid than your tax liability) you owe a balance due.
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