What does tax liability mean?

Question

What does tax liability mean?

Answer 1

At it's most basic, it means the amount of tax you are responsible for. In the context of the stimulus payment, it's the amount of tax owed before any withholding or estimated tax payments and after non-refundable credits except for the child tax credit. You can detemine this by looking at the following lines on your tax return:

1040 - Lines 57 and 52

1040A - Lines 35 and 32

1040EZ - Line 10

This amount determines your rebate. For a single person, if the amount is $300 or less you get $300. If it's between $300 and $600 you get the exact amount, if it's $600 or more you get $600.

Answer 2

If you're talking about net income tax liability for calculating your rebate:

Your net income tax liability is one of the following depending on which form you filed:

· On Form 1040, the amount shown on Line 57 plus the amount on Line 52;

· On Form 1040A, the amount shown on Line 35 plus the amount on Line 32; or

· On Form 1040EZ, the amount on Line 10.

Answer 3

It depends on the context you are using it in, but I would bet you are wondering if you or somebody qualifies for the stimulus check.  You tax liability is a number you can find on your tax form if you look for "total tax".  It is your tax bill for the year.  It is calculated when you do your taxes, then credits are applied including credit for all the money your employer withheld for taxes.  If you have more credits than tax liability you have a refund coming.  If you have more tax liability than credits you will owe when you file.

Answer 4

it's what you owe in taxes