What Is the Definition of Tax Liability?


Tax liability is the amount of money a person owes the government in a year in terms of tax. This amount is often calculated as a percentage of one's income and varies according to income. There are also different taxables which incur different amounts of tax e.g. capital gains tax is usually lower than income tax.
Q&A Related to "What Is the Definition of Tax Liability"
The amount of tax that must be paid, Taxpayers meet/pay their federal income
The term "employee" is defined under state law, although the laws of the various states are similar in this regard. An employee is not the same as an independent contractor
It's when you pay taxes later on something you do now. Say the government of Freedonia wants its factories to replace their old boilers with new ones...the new ones will pollute less
income, property, sales, or other taxes owed to a government entity. See also provision for income taxes .
1 Additional Answer
Tax liability is the tax one is legally obligated to pay to an authority. This happens as a result of an occurrence of a taxable event. The Tax liability is calculated by applying a proper tax tariff to the taxable event's tax base.
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