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tax refund

Definition

The return by the government of excess taxes paid by an individual. If, during the course of a calendar year, an individual paid more taxes than they actually owed (after taking into consderation income tax, withholdings, tax deductions or credits, and other factors), then he or she will receive a tax refund after filing his or her taxes for the year.

Featured Tip

Rethink Tax RefundsTax refunds are not as great as people think. Why would you want to give the government an interest-free loan until April? Then again, it acts as a forced savings program. You choose what's best. ... Read more