Question

Credits higher than taxes entered

Forum|Forum|6 years ago
February 15, 2020
1 reply
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Turbo Tax shows a 'calculated' credit $600 higher than taxes taken out of income sources. Why?

Some credits are refundable, meaning that they can increase your refund above the amount you had withheld.

Refundable credits include earned income credit, additional child tax credit, american opportunity credit, and some other credits.

To see if you are receiving refundable credits you can preview the Form 1040 by:

Clicking on My Account at the top of the online program screen.
Then, click on Tools.
Click on View Tax Summary.
Click on Preview my 1040.

Then look at line 18e 'total other payments and refundable credits'. If there is an amount there, you are receiving refundable credits.

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2

20gfoTT20Author

The only tax credits I have, as far as I know, are taxes taken before distribution of money identified on 1099s (my only income). Line 17, Form 1040, which is supposed to include taxes shown on w2s and 1099s, shows a number almost $600 higher than the tax values I entered. I have reviewed all income and tax input three (3) times. Turbo Tax seems to be adding something that should not be.