Possible over refund issue

[olake60]

While entering into Turbo Tax the first income section I entered in income of $13,250 from Box 1 and $950 Fed tax withheld from Box 2 and Turbo Tax says the refund will be about $1,695. This is before entering into Turbo Tax any other income, credits, deductions or the 3rd stimulus check. This refund seems high. Does it make sense that the fed refund exceeds the total fed tax withheld?

[AamilD]

It depends. While it is hard to discuss the refund amount without looking at the entire return and your filing status and the number of dependents you have, it is possible that most likely you are getting Earned Income Credit. Please refer to the image below for a guide on how the Earned Income Tax Credit is calculated.

Additionally, you can verify the Earned Income Credit by doing a Preview of your return. Please follow the steps below to preview your return:

1. Open or continue your return.
2. Select Tax Tools in the left menu.
3. With the Tax Tools menu open, you can then:
   • Preview your entire return: Select Print Center and then Print, Save, or Preview This Year's Return (you may be asked to register or pay first).
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu. This option is free and you can Preview your return before you file.

When you preview your return, look for Line 27 which will display the Earned Income Credit you are getting.

Additionally, please visit Preview Tax Return before E-Filing , for more information.

[olake60]

Thank you very much for the clarification. The table you provided was most helpful and I checked line 27 as recommended and bingo there was the earned income credit.