What is tax liability & how to calculate it?

  • Tax Liability

    Tax liability is the amount of money you owe to tax authorities.(Tax authorities include your local, state, and federal departments).

  • How to calculate?

    Your tax liability would be a portion of the taxable income based on the applicable tax rate. The taxable income is derived from income your earn by taking into account tax credits (child and dependent care expenses, retirement savings contributions, residential energy saving, educational credits etc. ) and additional taxes (e.g., self-employment tax).

Related Questions

What is IRS form 4868?

When is the deadline for filing my personal tax extension?

Who can file Form 4868?

Where to mail paper-form 4868 to file extension for 1040?

How do I apply for a personal income tax extension?

Last modified 12 Apr 2018 05:04

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