What Is a Tax Refund?
A tax refund is a reimbursement to a taxpayer for any excess amount paid to the federal government or a state government. While taxpayers tend to look at a refund as a bonus or a stroke of luck, it often represents what is essentially an interest-free loan the taxpayer made to the government. It’s often possible to avoid overpaying your taxes so you can keep more money in your pocket each paycheck—and avoid a refund when you file your tax return.
