Simple English definitions for legal terms
Read a random definition: inhonestus
A refund is when someone gets their money back because they paid too much. This can happen when someone overestimates how much tax they owe or when their employer takes too much money out of their paycheck. Refund can also mean the act of replacing old securities with new ones.
Definition: Refund is the return of money to a person who has paid more than what was required or owed. This can happen when a person overestimates their tax liability or when an employer withholds too much tax from their earnings.
Examples:
The examples illustrate how a refund is the return of money that was paid in excess. In the first example, John paid more taxes than he owed, so he received a refund. In the second example, Mary paid for a dress that she returned, so she received a refund of the purchase price. In the third example, Bob paid excess interest on his old mortgage, so he received a refund of the excess amount when he refinanced.