A tax rebate refers to a refund of excess taxes paid to the government. It is a repayment of taxes that an individual or business overpaid throughout the year. Tax rebates can be awarded due to various reasons, such as overestimating tax liability, claiming deductions or credits that reduce the tax liability, or changes in tax laws that retroactively affect the amount owed. The refund can be in the form of a check or a reduction in the amount owed for the next tax year. It is different from a tax deduction, as it is a return of already paid taxes rather than a reduction in taxable income.
