26
QuizMultiple Choice

Study Guide and Quiz

Question 26 • S25 Introduction to Business A (Theisen)

When you pay more than you owe in taxes and the IRS gives you money back, that money is called _________.

Answer
A
A tax refund
B
Gross pay
C
Estimated tax
D
An audit

Explanation

When you pay more in taxes during the year than you ultimately owe, the IRS returns the extra amount to you. That returned money is called a tax refund. Gross pay is earnings before deductions, estimated tax is a tax payment made in advance, and an audit is a review of tax records.

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