refundable

Refundable is an adjective used to describe something that can be returned with a refund of money or value. In finance and policy, a refundable arrangement means the holder is entitled to receive money back under specified conditions. The term is often contrasted with nonrefundable, which means no payment will be returned beyond the original consideration.

In taxation, a refundable tax credit reduces tax liability below zero and can result in a cash payment from the government to the taxpayer. Examples include certain earned income tax credits in many jurisdictions. By contrast, a nonrefundable tax credit can only reduce liability to zero and cannot produce a refund.

In consumer commerce, refundable policies allow customers to return goods, cancel services, or receive a refund of the amount paid, subject to conditions such as time limits, proof of purchase, or restocking fees. Refundability can apply to tickets, deposits, or prepaid services, where cancellation yields a monetary refund or an alternative credit.

In contracts and business practice, refundable arrangements may involve deposits or guarantees that are returned if the contract is not executed or if certain conditions are not met. The specifics—eligibility, time limits, and processing—vary by policy, jurisdiction, and product. Overall, the concept of refundability centers on the possibility of recovering all or part of a payment when certain criteria are satisfied.