Can my refund be more than the taxes withheld?
Asked Sep 15, 2009, 11:48 PM
Hello Knowledgeable Tax People,
If the tax credits I qualify for are larger than the amount of taxes I owe, will my refund be greater than the amount of taxes that were withheld?
I just used a tool on the turbo tax website called TaxCaster to determine if I would actually get 30% of a $4,500 energy efficient home improvement back (See attached Screen Shot). Based on my income, TaxCaster says I will owe about $3,721, which seems about right. With three children and a $1,350 (30% of $4,500) energy efficient home improvement credit, I qualify for $5,150 in tax credits. $3,721-$5,150 = -$1,429 owed. Because I have withheld about $3,000, TaxCaster says my refund will be the $3,000 withheld plus the $1,429 difference between the tax credits and taxes owed for a total of $4,429. Is this correct? Can my refund be more than the taxes withheld?