Refund

AAA

DEFINITION of 'Refund'

A payment from the government for an individual's overpaid taxes. An individual in this situation is said to be "over-withholding." Federal income tax refunds are not taxable.

INVESTOPEDIA EXPLAINS 'Refund'

A refund occurs when the government owes some of the taxes you paid throughout the year.

RELATED TERMS
  1. Earned Income Credit - EIC

    A tax credit in the United States which benefits certain taxpayers ...
  2. Withholding Tax

    1. Income tax withheld from employees' wages and paid directly ...
  3. Income Tax

    A tax that governments impose on financial income generated by ...
  4. Negative Income Tax - NIT

    A guaranteed minimum income plan advocated by economist Milton ...
  5. Refundable Credit

    A tax credit that is not limited by the amount of an individual's ...
  6. Direct Deposit

    Electronic funds that are deposited directly into your bank account ...
Related Articles
  1. How To Invest On A Shoestring Budget
    Investing Basics

    How To Invest On A Shoestring Budget

  2. 10 Money-Saving Year-End Tax Tips
    Taxes

    10 Money-Saving Year-End Tax Tips

  3. Tax-Saving Advice For IRA Holders
    Taxes

    Tax-Saving Advice For IRA Holders

  4. Eight Financial Safeguards If Disaster ...
    Personal Finance

    Eight Financial Safeguards If Disaster ...

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center