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


Investor Glossary | 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