what does tax liability mean?

Re: what does tax liability mean?

Liability means anything that a person is obliged to pay to the other person.

Re: what does tax liability mean?

A tax liability is a legal claim on assets. Should an entity default on paying its taxes, the governing authority may foreclose on the delinquent account, or take out a lien or encumbrance on an asset.
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Re: what does tax liability mean?

Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance.
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Re: what does tax liability mean?

The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance.

Re: what does tax liability mean?

Tax liability is the total amount of tax to pay, it is an accounting term and it means a debt you may owe. The fact you did not have to pay tax last year does not mean you do not owe tax this year. It depends on the amount of income you have earned. If you are earning little amount of money chance you do not have to pay any tax hence you need to fill up the firm you have been given (form W-4) with exempt on it,

Re: what does tax liability mean?

If your income is higher then the government fixed income then you should need to pay tax to government and it is your liability. It is a primary liability. It is also applicable on may income sources like you getting income from your property then there is also more tax liability.