What "tax refund" means in finance

A tax refund is a reimbursement of excess taxes paid by an individual or company to the government, typically resulting from over-withholding or overpayment of estimated taxes. The refund is issued by the government in the form of a check, direct deposit, or applied to future tax liabilities. It represents a return of funds that were owed to the taxpayer, but were temporarily held by the government. Tax refunds are commonly received after filing income tax returns for the year, and can be used to pay down debt, save, or make purchases.