Asked by Lionell Martin Jr on May 02, 2024
Verified
Tax liability is calculated using taxable income.Permitted deductions are then subtracted from the tax liability.
Tax Liability
The total amount of taxes owed by an individual, corporation, or other entity to tax authorities.
Taxable Income
The amount of an individual's or entity's income used to determine how much tax is owed to the government.
Permitted Deductions
Allowable subtractions from gross income that reduce taxable income, as defined by tax laws.
- Comprehend the methodology involved in the computation of tax obligations and the significance of allowed deductions.
Verified Answer
SK
sofiya KotarskiMay 09, 2024
Final Answer :
False
Explanation :
Tax liability is calculated using taxable income, but permitted deductions are subtracted from gross income to determine the taxable income, not from the tax liability.
Learning Objectives
- Comprehend the methodology involved in the computation of tax obligations and the significance of allowed deductions.