tax refund

Your taxes are estimated and withheld periodically from your pay as you earn money throughout the year. At tax time (usually April 15th) you “true up” with the IRS when you file your return and calculate your total taxes owed for the past year. If you withheld more taxes than you owe in total, you get a tax refund from the IRS Department of Revenue after you file your taxes. A refund can also result from certain tax credits.
For example, if you withheld $5,000 during the year and your tax return says your total taxes owed for the year was $4,500 then you should receive a $500 tax refund.