Refund

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.

RELATED TERMS
  1. Overwithholding

    A generic term referring to an excess amount of tax being withheld ...
  2. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household ...
  3. Intaxification

    The feeling of satisfaction and joy that a tax refund creates ...
  4. Refundable Credit

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    A loan provided by a third party against a taxpayer's expected ...
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RELATED FAQS
  1. Can the IRS withhold your tax refund?

    Learn about the instances in which the IRS can levy your federal and state income tax refunds, and find out how the levy ... Read Answer >>
  2. How do I get a split tax refund?

    You don't have to receive your tax refund in a lump sum. Learn the options you have for splitting the money the IRS owes ... Read Answer >>
  3. What are the benefits of splitting my tax refund?

    If you receive a refund when you file your tax return, there are some convenient options you can take advantage of. Read Answer >>
  4. When should my tax refund arrive?

    Read about how long it takes the IRS to process your income tax return and what factors could delay receiving your tax refund. Read Answer >>
  5. Can the IRS garnish your tax refund?

    Understand whether the IRS can legally garnish a person's tax returns. Learn the priority for garnishing wages for state ... Read Answer >>
  6. What assets are taxable and what assets are not taxable?

    Adjust your taxable income by understanding what assets the IRS taxes. Learn about legal strategies to lower tax liability ... Read Answer >>
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