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Withholding has everything to do with it. Why do you think $10 an hour comes down to 1200 instead of 1600/month?

You can choose to withhold more or less, but the default taxation on w-2's do generally give a bit of a refund. Better to take out too much when you don't need it than slam down a gigantic bill when at once a year later.






If the refund is more than I paid in total, I would get a refund if I didn't pay anything at all though.



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