Why am i getting less money back than what my w2 says?

[grimaldo_anel]

My W2 says Federal Income tax withheld is more than $2000, and I am only getting $200. Why could that be? Did I possibly make too much money? it was only a little over $30,000.

[rjs · Accepted solution]

Your W-2 does not tell you how much your refund is. Your tax return tells you that. You do not automatically get back all the tax that was withheld.

If you are single with no dependents, under 65 years old, your only income is $30,000 on a W-2, and you take the standard deduction, your tax for 2016 would be $2,488. If you had less than that withheld, you would owe money.

You can look at your tax return and see how it arrives at a refund of $200.

If you have further questions, it would be helpful if you give exact amounts, and tell us what your filing status is and whether you have any dependents.

[grimaldo_anel]

I  am single and with no dependents.
so the number under Federal Income tax withheld doesn't determine how  much i get back?

[rjs]

No, it doesn't. There is no number on your W-2 that determines how much you get back. What determines how much you get back is the number on your tax return - on Form 1040EZ line 13a, Form 1040A line 48a, or Form 1040 line 76a.

Why do you think that all the tax that you paid should be refunded to you? If you earn money, you have to pay tax on it. That's how we pay the cost of government services. If everyone got back all the tax that was withheld from their pay, the government wouldn't have any money. There would be no point in collecting taxes if it was all going to be fully refunded.