I get this question often. Many factors contribute to whether a taxpayer receives a refund or not. It all begins with how much income tax was withheld or paid in during the year.
If you withhold at the single, zero dependents rate, but you’re married with three kids, there is a good chance you have overpaid and will receive a refund. Other factors are income, deductions, dependents, exemptions and tax credits. These factors play off each other. As your income gets higher, your deductions may be limited; hence, your taxable income is higher.
Many tax credits are limited or phase-out based on higher adjusted gross income. Credits can help lower your tax liability, possibly generating a tax refund.
