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Budgeting and Being a Smart Consumer

Question 4 • Personal Finance - EL3403

Citizens file income taxes to ensure that they will receive a if they paid too much in taxes throughout the year.

Answer
A
refund
B
penalty

Explanation

If citizens paid more in taxes during the year than they actually owed, filing an income tax return lets them claim the extra amount back. That money is called a refund. A penalty is an extra charge for failing to follow tax rules, not money returned to the taxpayer.

AI-written and checked against the verified answer.

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