tax-refund

Vocabulary Word

Definition

A 'tax refund' is a repayment from the government if you've paid more taxes than necessary over the year. It's not like a bonus or reward but a return of your own money that was overpaid.

Examples in Different Contexts

In personal taxation, a 'tax-refund' is the amount returned to a taxpayer when they've overpaid taxes. An accountant might explain, 'If your withholdings exceed your tax liability, you'll receive a tax-refund.'

Practice Scenarios

Tech

Scenario:

The substantial return we're anticipating from the IRS presents an opportunity to enhance our R&D initiatives.

Response:

Yes, the tax refund will provide us with additional capital for the development of our new software.

Accounting

Scenario:

Given the new tax laws, our clients are likely to see a significant adjustment to their end of year tax assessments.

Response:

Indeed, with these revisions, we can expect a larger tax refund which will need to be recalculated into their financial planning.