There are three factors that will determine the size of your refund (or what you owe).
- The total amount of income that you have.
- The amount you had withheld from your wages.
- Whether you qualify for certain tax credits.
Your income determines the amount of tax you owe. This not only includes your wages, but also any other type of income you may have had. Based on criteria established by the IRS there are tables that determine the amount of tax that you owe.
The amount you had withheld generally come from your W-2 income; however, taxes can be withheld from other forms of income. If the taxes withheld is more than what you owe you will get a refund. If not, you will owe money.
You can subtract Tax Credits from the amount of tax you owe. Here are some common Credits:
If you look on your tax return FORM 1040 you can check these entries.
- Line 19 Child Tax Credit
- Line 27 Earned Income Credit
- Line 28 Additional Tax Child Tax Credit
- Line 29 American Opportunity Credit (For College)
- Line 30 Recovery Rebate Credit
- You also may have had more taxes withheld on your income.
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