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After you've determined the dollar amount of all the tax that you owe, you must subtract the amounts of the payments you've made during the year.
This includes both tax that was withheld on a paycheck, as shown in Box 2 of any W-2 forms you (or your spouse, if filing jointly) received, and any estimated tax payments you made during the year.
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Don't forget to add in any income tax withheld from pension checks or investment income such as interest and dividends, as shown on your 1099 forms.
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Refundable tax credits are treated as if they were payments that you made. Therefore, if you had an earned income credit (EIC) amount for 2007, or if you claimed the additional child credit, it will be added to your other tax payments. In effect, the credit will increase the refund you get (or at least reduce your tax bill).
If you are filing after April 15th because you requested an extension on Form 4868, include any amount you sent in with that form on Line
69 of Form 1040. If you overpaid your Social Security tax, report the overpaid amount on Line 67. And if you have any credit on Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, or Form 4136, Credit for Federal Tax Paid on Fuels, include those amounts on Line 70 since they are treated as tax payments.
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