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Level 2
February 3, 2022
Question

Refund why?

  • February 3, 2022
  • 1 reply
  • 1 view

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

    1 reply

    Level 15
    February 3, 2022

    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.
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    h_liebeltAuthor
    Level 2
    February 3, 2022

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