I was using the IRS tax caclulator and came across this oddity. If I'm overpaying on my taxes, i.e. paying money I don't owe, then why is the expected amount I will be given back less than half by the IRS? Shouldn't I be getting back the full $2,467?
"Based on the information you previously entered, your anticipated income tax for 2014 is $5,350. If you do not change your current withholding arrangement, you will have $7,817 withheld for 2014 resulting in an overpayment of $2,467 when you file your return. If you want your withholding to more closely match your anticipated tax, adjust your withholding on a new Form W-4 as follows: For the only job you entered (which has a projected salary of $29,861): 15 allowances. Check the “Single” box on your Form W-4 Assuming this recommendation is in effect for the rest of 2014 your expected refund should be about $950. Following this recommendation will ensure that the amount withheld from your wages will cover all of your projected tax liability while minimizing your refund."