Investor Glossary-tax refundInvestor Glossary-tax refundInvestor Glossary-tax refundInvestor Glossary-tax refundInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Refund

The HTML to link to this page
 

A tax refund is a payment by the IRS or a state government due to the overpayment of taxes. A tax refund is generally the result of excess withholding from paychecks. However, a tax refund can also result from overpayment of estimated taxes, or the under-estimating of tax credits, deductions, and/or exemptions. When a W-4 form is filed with an employer, the amount of withholding allowances checked will determine the amount of taxes withheld and thus factors into the amount of a tax refund, if applicable. An accurate tax return that warrants a tax refund will result in such tax refund being received within 6 weeks of receipt of filed taxes. If taxes are filed electronically, a tax refund, if warranted, can be expected three weeks after the received date. A tax refund may be received either by direct deposit or via a mailed check. In some instances, a tax refund from the federal government may be considered income and must be reported on state taxes. While a tax refund at the end of the year is welcomed, it does amount to an interest free loan to the governing body. In addition, consider that income earned in the early months of the year will take a year or more before it is returned by the taxing authority and inflation will have reduced the purchasing power of those excessive tax payments.



Rate this tax refund definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, in escrow, command economy, class C shares, ex-dividend date, limit order, balance sheet, LIBOR, implied volatility, required rate of return, stock market close, APR, margin rate, Zero Cost Collar, phantom income, 1035 exchange, retained earnings, inflation, diluted share, VIX, real GDP, annual return, current ratio, dividends payable, risk management, quality assurance, FTSE, EBITDA, irrevocable trust, deferred revenue, stock split, deferred tax, FICO score, reverse mortgage, option premium, wholly-owned subsidiary, average price per share, debt service coverage, 1031 exchange, cancelled check, minority interest, liquidity ratio, 401a, 144a, covered put, Key Rate Duration, ex-dividend, open position, per diem


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use