Tax Liability
Definition
- The total amount of tax owed by an individual.
Synonyms
accountability, tax burden, Revenue Canada, tax owed
Related Terms and Acronyms
- Assessments — Definition,
- Special and local taxes imposed upon property which benefits from an improvement that has been made in the vicinity.
- Circuit Breaker — Definition,
- A tax credit that reduces property taxes for the elderly and permanently disabled. The credit is dependent on the amount of income earned which means the more you make, the lower the credit.
- An electrical device used to turn power off and on in sectors of a building and to limit the flow of electricity through a circuit for safety purposes.
- Liabilities — Definition,
- A borrower's debts and legal obligations.
- Non-refundable Credit — Definition,
- Tax credits reduce your tax liability dollar-for-dollar. Non-refundable credits can get your tax bill down to zero.
- Notice of Assessment (NOA) — Acronym, Canada, Important,
- A form the federal government issues when personal taxes are complete. A notice of assessment shows a breakdown of the given years income along with the balance owing or refund.
➥ Canada Revenue Agency's T451 tax form. - Short Tax Year — Definition,
- A tax period less than 12 months long, resulting from a business start-up or the transition to a tax year ending on a different date.
- Tax Credit (TC) — Acronym, Important,
- Tax credits are used to reduce the amount of the tax owed. Tax credits are more valuable than deductions because they directly reduce the amount of tax owed, rather than reducing the amount of income that is taxed.
