# Tax Refund

*Taxes — Finicade finance glossary*

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.

**Also known as:** income tax refund, tax rebate

**Related terms:** [Withholding](https://finicade.com/glossary/withholding), [Form W-4](https://finicade.com/glossary/form-w-4), [Estimated Tax Payments](https://finicade.com/glossary/estimated-tax-payments), [Refundable Tax Credit](https://finicade.com/glossary/refundable-tax-credit), [Tax Credit](https://finicade.com/glossary/tax-credit)

Source: https://finicade.com/glossary/tax-refund