Tax refund

A tax refund is an amount of money paid back to a tax payer if their annual tax payment was more than they should have paid. [1]

Often when the tax liability (amount a tax payer has to pay) is assessed to be more than it should be from an accident then a refund will be sent for the amount that was overpaid.[2]


If a tax payer receives a tax credit that is more than the total tax liability of the tax payer, then a refund will be sent for the amount that could not be taken off of a tax payment. If a tax payer has a liability of $1,000 and receive a tax credit for $1,200 then the liability is -$200 and the government owes the tax payer money. The amount owed to the tax payer will be sent in the form of a tax refund.

See Also

References

  1. J.Black, N. Hashimzade, and G. Myles. (2009) "Tax Refund." [Online], Available: http://www.oxfordreference.com/view/10.1093/acref/9780199237043.001.0001/acref-9780199237043-e-3086?rskey=GM2fTe&result=1, 2009 [Aug 30, 2016]
  2. "A Dictionary of Economics", entry: tax refund, published Oxford University Press, 2013. Edited by John Black, Nigar Hashimzade, and Gareth Myles Online version accessed [August 17th, 2017].