July 29th, 2010 
admin
taxcut federal 2006
Is it possible to get a bigger total refund then what has already been withheld?.
I started a small part time business in 2006 which had a loss in addition to all the start up costs. I am using TAXCUT. The program is telling me I am getting a refund of $7000.00 when my W2 fed witholding is only $3500.00.
There are many reasons why your refund could be higher than your withholding. They are called Refundable Credits, Earned income credit is for people 25-65 without children incomes under around $9000, and people of any age with children making under around $38,000 if you have 2 children. Also there is the Additional Child Tax Credit if you qualify that is refundable. This year is also the year for the Federal Excise Tax refund for the phone tax. Without the specifics of your situation I can not be certain why your refund is higher but these are some of the common sources. Good luck and if you are unsure take your taxes to a professional.
HOTLIPS you do need to include your business on your taxes otherwise you could be facing an audit and penalties and interest with the IRS.
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