Refund why?

[h_liebelt]

I am self-employed . I am getting a refund. I never withheld taxes for the 2021 season. Why am I getting a refund? 

[JulieS]

If you are getting a refund and did not have any withholding, you must be showing a refundable credit. 

I don't know the specifics of your situation, but there are several refundable credits this year including:

• Earned income tax credit (EITC) - Credit is based on the amount of your earned income and your total income.
• Premium tax credit (PTC) - If you have Marketplace insurance coverage, you may get a credit for not taking the entire advance during the year to which you were entitled.
• American opportunity tax credit (AOTC) - This is based on higher education expenses. 
• Child tax credit (ACTC) - This based on having dependent children.
• Health coverage tax credit (HCTC) - This is a credit for small businesses that provide health coverage to employees.
• Recovery Rebate Credit (RRC) - If you did not receive the third Stimulus payment, you can claim it on your tax return.

[h_liebelt]

should I take the refund or will I find out later that I really owe some taxes?

[h_liebelt]

I didn't withhold income. Why am I getting a refund? Is this because I took the standard deduction?    

[AliciaP1]

You can review your refundable credits as well as verify your self-employment income is listed correctly on your draft 1040 by following these steps in TurboTax Online:

1. On the left side of your screen click Tax Tools
2. Click Tools
3. Click View Tax Summary
4. Click Preview my 1040
5. Scroll down to the refundable credits on Schedule 3 to see what is causing the refund