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Subtracting Withholding and Other Payments and Credits

The result of this step is the tax owed. This is the place where people learn the amount they owe to the government in additional tax. When individuals overpay their taxes they are entitled to a refund. This is the basic system used by the federal government; it is also the process used in the vast majority of states. In fact, many states require a copy of taxpayers’ federal income tax return when they file state income tax returns.


Inside Subtracting Withholding and Other Payments and Credits