Refund

Refund: A refund is a repayment of money to a taxpayer or consumer, typically resulting from an overpayment of taxes or a return of purchased goods. In accounting and taxation, it often refers to the excess amount paid to the government after the taxpayer’s income tax liability has been calculated, which is then returned to the taxpayer through a bank transfer or check.

For example, if an individual’s total tax withheld during the year exceeds their actual tax liability, the taxpayer will receive a refund for the difference when they file their tax return.