{"id":3823,"date":"2025-05-23T13:01:46","date_gmt":"2025-05-23T13:01:46","guid":{"rendered":"https:\/\/legendfusions.com\/usa\/?p=3823"},"modified":"2025-05-23T13:01:49","modified_gmt":"2025-05-23T13:01:49","slug":"what-is-income-tax-payable","status":"publish","type":"post","link":"https:\/\/legendfusions.com\/usa\/what-is-income-tax-payable\/","title":{"rendered":"What Is Income Tax Payable? [Business Tax Accounting]\u00a0"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3823\" class=\"elementor elementor-3823\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bd86005 pbmit-col-stretched-none pbmit-cursor-color-blackish-color pbmit-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bd86005\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7ee7aa2 pbmit-bg-color-over-image\" data-id=\"7ee7aa2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0e7c0b9 elementor-widget elementor-widget-text-editor\" data-id=\"0e7c0b9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW54041415 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW54041415 BCX0\">Income tax payable is just one of the jargons that <\/span><span class=\"NormalTextRun SCXW54041415 BCX0\">every <\/span><span class=\"NormalTextRun SCXW54041415 BCX0\">business<\/span> <span class=\"NormalTextRun SCXW54041415 BCX0\">encounters<\/span><span class=\"NormalTextRun SCXW54041415 BCX0\"> in<\/span><span class=\"NormalTextRun SCXW54041415 BCX0\"> their finan<\/span><span class=\"NormalTextRun SCXW54041415 BCX0\">c<\/span><span class=\"NormalTextRun SCXW54041415 BCX0\">ial accounting<\/span><span class=\"NormalTextRun SCXW54041415 BCX0\">.<\/span> <span class=\"NormalTextRun SCXW54041415 BCX0\">Small businesses<\/span> <span class=\"NormalTextRun SCXW54041415 BCX0\">often struggle to understand whether it is <\/span><span class=\"NormalTextRun SCXW54041415 BCX0\">a \u2018liability\u2019 or an \u2018expense.\u2019 <\/span><\/span><span class=\"TextRun MacChromeBold SCXW54041415 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW54041415 BCX0\">What is income tax payable<\/span><\/span><span class=\"TextRun SCXW54041415 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW54041415 BCX0\">, how to calculate, and more, f<\/span><span class=\"NormalTextRun SCXW54041415 BCX0\">ind<\/span><span class=\"NormalTextRun SCXW54041415 BCX0\"> out in this guide.\u00a0<\/span><\/span><span class=\"EOP SCXW54041415 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><!-- \/wp:html --><!-- \/wp:columns --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c7f8313 elementor-toc--minimized-on-tablet elementor-widget elementor-widget-table-of-contents\" data-id=\"c7f8313\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;headings_by_tags&quot;:[&quot;h2&quot;,&quot;h3&quot;],&quot;exclude_headings_by_selector&quot;:[],&quot;no_headings_message&quot;:&quot;No headings were found on this page.&quot;,&quot;marker_view&quot;:&quot;bullets&quot;,&quot;icon&quot;:{&quot;value&quot;:&quot;fas fa-circle&quot;,&quot;library&quot;:&quot;fa-solid&quot;},&quot;minimize_box&quot;:&quot;yes&quot;,&quot;minimized_on&quot;:&quot;tablet&quot;,&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t\t\t\t<h4 class=\"elementor-toc__header-title\">\n\t\t\t\tContents\t\t\t<\/h4>\n\t\t\t\t\t\t\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--expand\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__c7f8313\" aria-expanded=\"true\" aria-label=\"Open table of contents\"><i aria-hidden=\"true\" class=\"fas fa-chevron-down\"><\/i><\/div>\n\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--collapse\" role=\"button\" tabindex=\"0\" aria-controls=\"elementor-toc__c7f8313\" aria-expanded=\"true\" aria-label=\"Close table of contents\"><i aria-hidden=\"true\" class=\"fas fa-chevron-up\"><\/i><\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<div id=\"elementor-toc__c7f8313\" class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<i class=\"elementor-toc__spinner eicon-animation-spin eicon-loading\" aria-hidden=\"true\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a52a5da elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"a52a5da\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h2 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tWhat Is Income Tax Payable?  \r\n\t\t\t\r\n\t\t\t<\/h2>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c15360d elementor-widget elementor-widget-text-editor\" data-id=\"c15360d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Income tax payable, as its name suggests, is the amount payable to the government based on your business\u2019 taxable income. In the United States, it is the federal income tax you need to pay to Internal Revenue Service (IRS).\u00a0\u00a0<\/p>\n<p>Payable federal income taxes come from all your profits (e.g., operating income, capital gains), called gross income or pre-tax profit, minus your allowable deductions or expenses.\u00a0<\/p>\n<p>There are several confusions around what income tax payable is in financial accounting, especially whether it should be treated as an expense or a liability. There\u2019s a clear difference between the two (more below).\u00a0\u00a0<\/p>\n<p><!-- \/wp:html --><!-- \/wp:columns --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8481d1d elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"8481d1d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h2 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tIs Taxes Payable a Liability or Expense?  \r\n\t\t\t\r\n\t\t\t<\/h2>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4a177db elementor-widget elementor-widget-text-editor\" data-id=\"4a177db\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Your income tax payable is shown in your balance sheet (which lists what you owe), hence, it is a liability. Tax expense, on the other hand, is how much tax your business had to deal with during a certain period. This is shown in your income statement (which reports how much money you made or lost).\u00a0<\/p>\n<p>Investors look at these reports to see your business\u2019 financial standing, especially if it makes a healthy bottom line.\u00a0<\/p>\n<p><!-- \/wp:html --><!-- \/wp:columns --><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7d1e66a pbmit-animation-none elementor-widget elementor-widget-image\" data-id=\"7d1e66a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"847\" height=\"476\" src=\"https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2025\/05\/40-BA250502LFnUSA-1024x576.webp\" class=\"attachment-large size-large wp-image-3833\" alt=\"Income tax payable on balance sheet reflects tax expense from income statement\" srcset=\"https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2025\/05\/40-BA250502LFnUSA-1024x576.webp 1024w, https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2025\/05\/40-BA250502LFnUSA-300x169.webp 300w, https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2025\/05\/40-BA250502LFnUSA-768x432.webp 768w, https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2025\/05\/40-BA250502LFnUSA.webp 1500w\" sizes=\"(max-width: 847px) 100vw, 847px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ea612e elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"5ea612e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h3 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tIs Income Tax Payable a Current Liability?  \r\n\t\t\t\r\n\t\t\t<\/h3>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9662bea elementor-widget elementor-widget-text-editor\" data-id=\"9662bea\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW200268383 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW200268383 BCX0\">Usually, income tax payable is a current liability, as it is a short-term bill, often paid within a year. Ano<\/span><span class=\"NormalTextRun SCXW200268383 BCX0\">ther <\/span><span class=\"NormalTextRun SCXW200268383 BCX0\">thing to <\/span><span class=\"NormalTextRun SCXW200268383 BCX0\">clear up<\/span><span class=\"NormalTextRun SCXW200268383 BCX0\"> is how it is different to <\/span><\/span><span class=\"TextRun MacChromeBold SCXW200268383 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW200268383 BCX0\">deferred tax<\/span><\/span><span class=\"TextRun SCXW200268383 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW200268383 BCX0\">.\u00a0<\/span><\/span><span class=\"EOP SCXW200268383 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4240426 elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"4240426\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h3 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tIncome Tax Payable vs Deferred Income Tax  \r\n\t\t\t\r\n\t\t\t<\/h3>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cfc5b93 elementor-widget elementor-widget-text-editor\" data-id=\"cfc5b93\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The money you currently owe in income tax payable is different from deferred income tax. Deferred tax happens when there is a discrepancy between your regular accounting and tax reports.\u00a0\u00a0<\/p>\n<p>For example, how you count the wearing out of equipment (depreciation) might be different for taxes than for your own records. This can create a deferred tax liability if you owe more tax later, or a deferred tax asset if you owe less.\u00a0\u00a0<\/p>\n<p>Dealing with other countries may make understanding these two a bit more complicated, as the United States tax law differs from international taxation.\u00a0\u00a0<\/p>\n<p>If you operate interstate, you might want to read about the <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/legendfusions.com\/usa\/tax-implications-of-moving-to-another-state\/\">tax implications when moving to another state<\/a><\/span>.\u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-76e228a elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"76e228a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h2 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tHow to Calculate Income Taxes Payable  \r\n\t\t\t\r\n\t\t\t<\/h2>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f41796c elementor-widget elementor-widget-text-editor\" data-id=\"f41796c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Generally, here\u2019s how you calculate your income tax payable:\u00a0<\/p>\n<ol>\n<li>Determine your gross income.\u00a0<\/li>\n<li>Subtract the deductible expense from your gross income (this arrives at your taxable income).\u00a0<\/li>\n<li>Apply the <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/legendfusions.com\/usa\/us-tax-brackets-2025\/\">federal income tax rates<\/a><\/span> on your taxable income. The U.S. tax law follows progressivity and marginal rates, which means the more money you make, the higher the percentage you pay.\u00a0\u00a0<\/li>\n<li>Apply eligible tax credits to further lower your tax liabilities.\u00a0<\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0a34c24 elementor-widget elementor-widget-text-editor\" data-id=\"0a34c24\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun MacChromeBold SCXW188817530 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW188817530 BCX0\">Federal personal income tax<\/span><\/span><span class=\"TextRun SCXW188817530 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"> <span class=\"NormalTextRun SCXW188817530 BCX0\">work<\/span><span class=\"NormalTextRun SCXW188817530 BCX0\">s <\/span><span class=\"NormalTextRun SCXW188817530 BCX0\">different<\/span><span class=\"NormalTextRun SCXW188817530 BCX0\">ly<\/span><span class=\"NormalTextRun SCXW188817530 BCX0\"> from <\/span><\/span><span class=\"TextRun MacChromeBold SCXW188817530 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW188817530 BCX0\">corporate<\/span><\/span><span class=\"TextRun SCXW188817530 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW188817530 BCX0\">.\u00a0<\/span><\/span><span class=\"EOP SCXW188817530 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-948efb6 elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"948efb6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h2 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tHow to Pay Tax Payable  \r\n\t\t\t\r\n\t\t\t<\/h2>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-205cc29 elementor-widget elementor-widget-text-editor\" data-id=\"205cc29\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Businesses often have to pay estimated taxes throughout the year. Once you determine your income tax payable, be sure to file and make tax payment on time.\u00a0\u00a0<\/p>\n<p>If you are an individual business owner, you use Form 1040 to file your tax returns. Formerly, personal exemptions were available to lower your tax, but this is now phased out.\u00a0\u00a0<\/p>\n<p>Companies use different tax forms and might have to deal with a special rule called the AMT (Alternative Minimum Tax), which makes sure they pay at least a certain amount of tax.\u00a0<\/p>\n<p>For limited liability companies, usually the business itself does not pay income tax. Instead, the owners report the business&#8217;s profits or losses on their own tax returns and pay federal personal income tax on it.\u00a0<\/p>\n<p>Remember that payroll taxes, which are taxes on wages you pay to your employees (like Social Security and Medicare), are different from income tax payable.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa49397 elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"aa49397\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h2 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tLegend Fusions\u2019 Accounting Support \r\n\t\t\t\r\n\t\t\t<\/h2>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b89309b elementor-widget elementor-widget-text-editor\" data-id=\"b89309b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Need clarity on your business\u2019 financial accounting? Legend Fusions is here to sort your accounting books, taxes, and all your other administrative obligations. We have been helping hundreds of taxpayers over the decade under the name of our UK-based firm. They come back every tax season, and we get it\u2014simple and customized solutions, every time.\u00a0<\/p>\n<p>Whether you are an individual or a business owner, we guide you on what is income tax payable and more. Reach out to our <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/legendfusions.com\/usa\/contact-us\/\">US tax accountant<\/a> <\/span>anytime you need help!\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8a3e643 elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"8a3e643\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h4 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tReviewed by:\r\n\t\t\t\r\n\t\t\t<\/h4>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-2d138c1 pbmit-col-stretched-none pbmit-cursor-color-blackish-color pbmit-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2d138c1\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-c189860 pbmit-bg-color-over-image\" data-id=\"c189860\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-af9f5c8 elementor-position-left elementor-position-top elementor-vertical-align-top elementor-widget elementor-widget-image-box\" data-id=\"af9f5c8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-image-box-wrapper\"><figure class=\"elementor-image-box-img\"><img decoding=\"async\" width=\"512\" height=\"512\" src=\"https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2024\/10\/Hira.webp\" class=\"attachment-full size-full wp-image-2443\" alt=\"Hira\" srcset=\"https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2024\/10\/Hira.webp 512w, https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2024\/10\/Hira-300x300.webp 300w, https:\/\/legendfusions.com\/usa\/wp-content\/uploads\/2024\/10\/Hira-150x150.webp 150w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure><div class=\"elementor-image-box-content\"><h4 class=\"elementor-image-box-title\">Hira Asif<\/h4><p class=\"elementor-image-box-description\">Hira Asif, Client Manager (US) at Legend Fusions, brings over 11 years of tax expertise, including 8 years with Ernst &amp; Young. Her work focuses on tax advisory, compliance, and planning for individuals, partnerships, and private equity funds. With a deep knowledge of federal, state, and local tax regulations, Hira is skilled in identifying tax planning opportunities and reviewing corporate and partnership tax returns to optimize compliance and reduce exposures.<\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bd3409a elementor-widget__width-initial elementor-shape-rounded elementor-grid-0 e-grid-align-center elementor-widget elementor-widget-social-icons\" data-id=\"bd3409a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"social-icons.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-social-icons-wrapper elementor-grid\">\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-linkedin elementor-repeater-item-2e23a96\" href=\"https:\/\/www.linkedin.com\/in\/hira-asif-1a08a81a1\/\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Linkedin<\/span>\n\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fab fa-linkedin\"><\/i>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-21d7d2b elementor-widget elementor-widget-text-editor\" data-id=\"21d7d2b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW217166958 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217166958 BCX0\">This provides benefits for retirees, those with disabilities, and the family members of deceased workers. <\/span><span class=\"NormalTextRun SCXW217166958 BCX0\">There&#8217;s<\/span><span class=\"NormalTextRun SCXW217166958 BCX0\"> a set percentage for this <\/span><\/span><span class=\"TextRun MacChromeBold SCXW217166958 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217166958 BCX0\">tax<\/span><\/span><span class=\"TextRun SCXW217166958 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217166958 BCX0\">, and it only applies to your <\/span><\/span><span class=\"TextRun MacChromeBold SCXW217166958 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217166958 BCX0\">wages<\/span><\/span><span class=\"TextRun SCXW217166958 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217166958 BCX0\"> up to a certain <\/span><\/span><span class=\"TextRun MacChromeBold SCXW217166958 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217166958 BCX0\">income<\/span><\/span><span class=\"TextRun SCXW217166958 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217166958 BCX0\"> limit each year.\u00a0<\/span><\/span><span class=\"EOP SCXW217166958 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d91b9af elementor-widget elementor-widget-pbmit_custom_heading\" data-id=\"d91b9af\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pbmit_custom_heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t<div class=\"pbmit-custom-heading \"><h2 class=\"pbmit-element-title\">\r\n\t\t\t\r\n\t\t\t\tWhat Is Income Tax Payable?  \r\n\t\t\t\r\n\t\t\t<\/h2>\r\n\t\t<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Income tax payable is just one of the jargons that every business encounters in their financial accounting. Small businesses often struggle to understand whether it is a \u2018liability\u2019 or an \u2018expense.\u2019 What is income tax payable, how to calculate, and more, find out in this guide.\u00a0\u00a0 Contents What Is Income Tax Payable? Income tax payable, [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":3832,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[44],"tags":[],"class_list":["post-3823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guide"],"_links":{"self":[{"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/posts\/3823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/comments?post=3823"}],"version-history":[{"count":22,"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/posts\/3823\/revisions"}],"predecessor-version":[{"id":3854,"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/posts\/3823\/revisions\/3854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/media\/3832"}],"wp:attachment":[{"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/media?parent=3823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/categories?post=3823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legendfusions.com\/usa\/wp-json\/wp\/v2\/tags?post=3823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}