A certain amount of money that the state or federal government gives back to a taxpayer who has paid more taxes than were due. Essentially, a taxpayer who has overpaid taxes throughout the past year will get a tax refund. Tax refunds are money given back at the end of the financial year.
Additional meaning of Tax Refund:
A tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus the refundable tax credits that they claim.