Refund

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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.

BREAKING DOWN 'Refund'

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

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RELATED FAQS
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    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
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    With a few exceptions, early withdrawals from traditional or Roth IRAs generally incur a tax penalty equal to 10% of the ... Read Full Answer >>
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    Credit card rewards are taxable in the United States some of the time. The Internal Revenue Service (IRS) classifies credit ... Read Full Answer >>
  4. Are Social Security benefits taxable after age 62?

    Eligibility to collect Social Security benefits begins at age 62. Many seniors, to collect larger benefit amounts, wait until ... Read Full Answer >>
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