Why did I not receive all my federal income tax withheld refund? Let's say I paid 5k but am only getting 3k why is that?

[jessbox]

Just to clarify I am still doing tax. I am not in the final stage yet. So this has nothing to do with the IRS taking the money or with Turbo Tax taking a "fee".

[Rachel_W]

If you had $5,000 in Federal Taxes Withheld and received a $3,000 refund, that means you had a $2,000 tax liability on your Tax Return.

Once your income reaches a certain level, it begins to be taxed, and the withholding you paid in is used to cover that tax. The level at which your income begins to be taxed depends on your Filing Status and Age.  Check out the TurboTax Filing Chart below to see the income level at which your income will become taxable for your Filing Status and Age.  Any amount above the filing threshold for your Filing Status/Age is considered taxable income.

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