Tax Refund
Also called: income tax refund, tax rebate
A tax refund is the return of tax you overpaid during the year, usually through excess payroll withholding. It is not a bonus or a gift — it's an interest-free loan you made to the government. The average US refund runs around $3,000, which is roughly $250 a month that could have been earning interest or clearing debt. Adjusting your W-4 converts a refund into monthly cash flow.