Explain taxable income and taxes owed?

Asked Apr 01, 2012
Assuming you're asking about the U.S., an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax. Income that is nontaxable may have to be shown on your tax return but is not taxable. You can receive income in the form of money, property, or services. A nontaxable list is available in IRS Publication 525, Taxable and Nontaxable Income.

"Taxes owed," is your tax liability; the amount you have to pay.
Answered Apr 01, 2012

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