A tax refund is the money returned to a taxpayer by the government when they have overpaid their taxes during the year. This can happen if too much money was withheld from their paycheck or if they qualified for certain deductions and credits that reduced their overall tax liability. Tax refunds are typically issued after individuals file their annual tax returns. Receiving a tax refund can provide a financial boost, allowing individuals to pay off debts, save for future expenses, or make purchases. The amount of the refund varies based on individual circumstances, including income level, filing status, and eligible deductions.