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. Investopedia Says:
A refund occurs when the government owes some of the taxes you paid throughout the year. Related Terms:
Direct Deposit
Direct Tax
Earned Income Credit
Income Tax
Refundable Credit
Withholding |