tax liability

[maria]

I’m trying to understand how tax liability is calculated for individuals and small businesses. What components are included, and how can I reduce my tax liability legally? Any tips or tools to track it better?

 

[alenaghose]

Tax liability is the total amount of taxes you owe to the government based on your income, assets, or transactions. It includes federal, state, and local taxes. It’s calculated by applying tax rates to taxable income and considering deductions, credits, or exemptions that might reduce the amount owed.

 

[niyati]

Tax liability is the total amount of tax that an individual or business owes to the government for a specific period, usually a year. It represents the legal responsibility to pay taxes on income, property, sales, or other taxable activities.