refund
REE-fund
/ˈriːfʌnd/
A repayment of a sum of money, typically to a customer or taxpayer who has overpaid.
A tax refund is not a gift or bonus from the government; it is simply the return of your own interest-free loan to the state.
The story behind the word. From Latin 'refundere', which literally meant 'to pour back' or 'flow back' (from 're-' 'back' + 'fundere' 'to pour'). It originally described liquids flowing back to their source before it was applied to money in the 16th century.
Word relationships
- repayment: Repayment is a general term for paying back any debt, while refund specifically refers to returning overpaid money.
- reimbursement: Reimbursement is paying someone back for out-of-pocket expenses they incurred on your behalf.
- charge: A charge is a demand for payment, whereas a refund is a return of payment.
Commonly confused with
- rebate: A refund is the return of overpaid money, while a rebate is a retroactive discount or incentive program.
Word family
- refundable (adjective): Able to be refunded or paid back.
Collocations
- tax refund
- issue a refund
- claim a refund
- full refund
Example sentences
- "She was thrilled to receive a tax refund of five hundred dollars." Tax Season News
Memory hook
Re-fund: the government is putting the 'funds' back ('re') into your pocket. Funds returned to you.
When not to use
Do not use 'refund' if the money returned is a discount applied before purchase (that is a rebate or discount).
Fun facts
- Every year, billions of dollars in tax refunds go unclaimed because people fail to file their tax returns, and the government eventually absorbs the money.
Related words
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