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Question

If we receive a refund from our federal income tax, what does this mean?

A. Not enough tax was withheld from our pay the previous year.

B. The right amount of withholding was taken from our pay the previous year.

C. We didn't earn any income last year.

D. Too much tax was withheld from our pay the previous year.

Answer

D. Too much tax was withheld from our pay the previous year.

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A refund from federal income tax means that too much tax was withheld from your pay the previous year. This means that you paid more than you owed in...