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What Is a Tax Refund?

By Jeremy Bowman – Updated Feb 25, 2025 at 9:33AM

Key Points

  • Tax refunds occur when taxes paid exceed taxes owed, often leading to significant payments.
  • The average tax refund in 2023 was $2,753, impacting personal and economic activities.
  • Most Americans receive their tax refunds within weeks of filing, enhancing short-term spending.
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