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-misswired- t1_j6a64ep wrote

All depends on your withholdings, deductions and credits. Typically, most people take the standard deduction as they don’t have enough things to itemize and reduce your overall tax liability. Some people are eligible for tax credits. This is usually how people get back thousands in a refund, without paying in a bunch, during the year.

The idea is to owe 0 and get back 0. This means your withholdings are spot on and you’re getting the most money back in your paycheck during the year.

If you owe, you need to adjust your withholdings, depending upon the amount you owe. Up to you if you want to pay a bill or not. For the people who get thousands back in a refund. It’s not necessarily because they overpaid during the year. It’s usually because they qualify for credits like earned income or child tax credits. It’s additional money. Not money they paid in and is being returned.

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ChickenCheeks7 OP t1_j6a74qa wrote

So me putting $20 in my extra withheld isn’t necessarily a bad thing because it balances out?

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-misswired- t1_j6a8yhc wrote

Yes, you can keep it that way. It won’t hurt you. If you start getting a refund, without applying any credits or deductions, at the time you file, then you can remove the $20. It would be overpaying at that point.

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