Thanks in advance for guidance. I'll keep it simple. My son is 24. He is a Dancer (Backup Dancer for singers / music videos, etc). He was also a Notary in 2021 doing mobile mortgage signings. He received three W2's. #1, income $636 / tax withheld $20.87 . #2, income $2930 / tax withheld $166.60 . #3, income $4299.98 / tax withheld $205.20 . He received two 1099 NEC's. #1, income $1454 / no tax withheld (this is for a Dance job). #2, income 1125 / no tax withheld (this is for his Notary Services).
Total W2 income is $7865. Total tax withheld is $392.67. Turbo Tax says that his Refund is $1572
I'm just scared that I did something wrong. I'm a 'by the book' filer. I don't want to mess with the IRS. Is this Refund legit?
Still researching ... I think it's the EIC. That amount is $1502. I've never dealt with EIC before so this is new to me. Is he basically getting a handout because he made little money?
It looks like he is getting the maximum EIC. It is a refundable credit. He is getting a credit for working and earning an income. I would not call it a handout. It is a credit that helps a lot of taxpayers and households.
Thank you SO MUCH! I continued reading Turbo Tax help and learned more about EIC. I haven't qualified for it in the past (according to Turbo Tax), so I didn't have a reason to understand it. I know ... short sighted. I didn't mean to offend by calling it a hand out. I was looking at it from a position of ignorance about the subject, and I was concerned that my son would be cheating the system if I filed based on him getting back more than he paid in. Thanks again for the help.