TAX RETURN FILING AND TAX RETURN REFUND

Lokesh28 Aug, 2023Education

TAX RETURN REFUND FILING: Tax return refund refers to the money that is returned to you by the tax authority if you have overpaid your taxes throughout the tax year. This typically happens when the total amount of tax withheld from your income (through payroll withholding or estimated tax payments) is more than the actual tax liability you owe based on your financial situation. In such cases, you are eligible for a tax refund, which is the excess amount you paid back to you. To summarize, tax return filing is the process of submitting your tax return to the tax authority, while tax return refund is the result of overpaying your taxes and receiving the excess amount back from the tax authority. Filing your tax return is the first step in determining whether you owe taxes or are entitled to a refund. If your tax return shows that you have paid more tax than necessary, you can claim a tax refund from the tax authority after your return is processed and accepted.