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U.S Income tax laws are fairly complex in themselves, but when broken down into smaller parts they can be easily understood. An individual earns income from various sources. But he is not taxed on the entire sum; he is entitled to certain exemptions. Congress terms these as ‘exclusions’; and a person’s taxable income is his gross earning minus exclusions and standard deduction. So what exactly is an Income tax refund? At the end of every month an average working person is entitled to a paycheck. But by being a national or a resident of the US, he has to pay the government tax. A fee for civic, federal and other state luxuries he enjoys.

The IRS on its part has this pre-determined percentage deducted from every paycheck before it is handed out, to save on the monumental task of collection later. Statistics show that in almost 80% of the cases polled, more than necessary amount has been deducted during the course of the year and hence the months of March, April and May are Income tax refund months and all Americans eagerly look forward to their reimbursements. But in order to enjoy the refund, tax returns have to be filed at every year end which normally falls in the month of April each year.

For this explicit purpose the IRS has issued a set of forms that have to be duly filled in and submitted. The forms in themselves are rather complicated and many tax consultancy firms have now entered the market to assist the tax paying populace. Once tax returns for the current year are filed, people can look forward to the tax refunds entitled to them. In most cases a Tax refund estimator (a software program), is used to calculate the tax return refund amount. So pay your taxes in time, every time and be the model citizen!