Why is my state tax refund larger than I paid in taxes to state of Wisconsin?

[BMcCalpin · Accepted solution]

You may have the Wisconsin Earned Income Credit (EIC). This credit is "refundable", which means that it is first applied to your tax due, then if there is credit left over, it is "refunded" to you as if you had excess withholding on your W-2.

The same happens on the federal return with the EIC.