Tendai has AGI of $70,000 and has made the following payments:
|State income tax withholding||2,200|
|State sales tax paid||2,100|
|Federal income tax withholding||8,000|
|Social security tax withheld from wages||5,600|
|State gift tax||6,000|
|Town real estate tax||9,000|
|Excise tax on personal realty||1,000|
Calculate the amount of taxes that Tendai can include with his itemized deductions.
Income Tax Liability:
Income Tax Liability is the total amount of tax payable to the government. The collected tax will form part of the government's revenue collection measures, which will be later paid for expenses incurred for public spending in health, education, public infrastructure, etc.
Answer and Explanation: 1
The following are taxes were paid by Tendai.
- State income tax withholding - $2,200 ( withhold )
- State sales tax - $2,100
- Federal income tax - $8,000...
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fromChapter 3 / Lesson 5
Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.