<p>Ok, thank you last 2 posters, that is what I thought. I have been reading the advantages & disadvantages of receiving a Large Federal refund & Nowhere have I seen that these (already taxed) refunds are supposed to be taxed again in the next filing year. If that is the case, the IRS would be all over me by now and many of my friends. The only deductions we do is the Children (I have 5, soon to be 6)--and take the Additional Child tax credit as we are eligable (this is not Unearned income, but something different). We have only done the long form 1 year when we sold a house. Otherwise it is always 1040A for us. We probably should put the correct exemptions on our W-4 to reduce this refund, I do agree! Are these refunds asked about on the FASTA? If so, I need to really get some things changed!</p>