How do you compute your current income tax liability?

Answer by  cgroverla (516)

Your tax liability is a table lookup based on your taxable income. Your taxable income is your income minus your standard deductions (or itemized deductions) and exemptions.

Answer by  Chaneygirl (1755)

Figure your taxable income (income less itemized and any other adjustments). Use the table in the form 1040 instructions to calculate tax.

Answer by  JBear (184)

It is the money that you would owe if you have no deductions. This amount is based on your pay minus 401K deductions.

Answer by  csj (114)

The best way (and really the only truely accurate way) to compute a persons tax liability is to visit the IRS via the internet. They have a handy little "income tax" calculator on there website. All you need is your most recent paystub. You enter the required field, hit submit, and it shows you what your projected tax liability is.

Answer by  vflee71 (25)

There's a lot variable to computing income tax liability. In general, IRS Publication 17 does provided a tax table base on income.