A tax refund is the money returned to a taxpayer by the government when they have overpaid their taxes throughout the year. This can happen if too much 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 tax returns, which detail their income and taxes owed. The refund amount can vary based on individual circumstances, and taxpayers usually receive their refunds via direct deposit or a mailed check.