What is the difference between a tax return and a tax refund?


by daniela , in category: Taxation and Accounting , a year ago

What is the difference between a tax return and a tax refund?

Facebook Twitter LinkedIn Telegram Whatsapp

1 answer

by london_lueilwitz , a year ago


A tax return and a tax refund are two different concepts related to income taxes.

A tax return is a form that individuals or businesses file with the government, providing details about their income, deductions, and other relevant information for the purpose of calculating their tax liability. It is an annual process and must be completed accurately and submitted to the tax authorities by a specified deadline, such as April 15th in the United States.

A tax refund, on the other hand, is the amount of money that individuals or businesses receive from the government if they have paid more in taxes throughout the year than what they actually owe. It is the excess amount that is returned to the taxpayer after their tax return has been processed and their tax liability has been calculated.

In summary, a tax return is the document filed with the government to report income and calculate tax liability, while a tax refund is the money returned to the taxpayer if they overpaid their taxes during the year.