Every year I fill out my Montana Income Tax Form and I get done and review the form and I check all the numbers and I notice I have not filled out the line that indicates what my taxes are. What line am I supposed to list my taxes on my income? Reading it over and over I finally end up thinking "this line that says Tax Liability might be it". That must be the line I list my taxes. Why is it listed as Tax Liability? How is 'Tax Liability" different from "Taxes"? Isn't that a little unnecessary, and worthless, to list the word "liability" after taxes?

I checked the surrounding states and the Federal 1040 tax form and none of them list Tax Liability as the place where one is to report their taxes. Wyoming and South Dakota apparently do not require one to pay state income taxes. Idaho tax form, line 20: "Tax from tables" (not "Tax Liability)".....N Dakota line 19 "Tax" (not Tax Liability)"......Federal form 1040: line 16 "Tax from tables". (not Tax Liability).....Why does Montana state income tax forms complicate the completing of tax forms by including the words "Tax Liability" instead of what these other examples use when listing where one is to list their taxes???

Is there some accounting genius in Montana, writing these tax forms who thinks everyone has a degree in accounting, and this genius accountant does not realize that Taxes and Tax Liability are the same thing and a waste of time and confusing to use the word liability after Taxes????

I tell my friends I paid so much in taxes this year, I don't tell them I paid so much in "Tax Liability" this year.

Perhaps they are trying to make a distinction between your tax liability and your tax due.

What's the difference?

Tax liability is the total amount of tax you are liable for paying for the given tax period.

Tax due is how much of your tax liability you still owe to the state at filing time. So, if your employer withheld some state income tax but not enough to cover your entire state tax liability, then the tax due would be equal to (tax liability - tax withheld).

There is how much tax you are liable (responsible) to pay, how much you've already paid (for example via payroll withholding or quarterly estimated tax payments), and how much tax that is still due at filing time.

If you say, "I had $2300 in tax due for 2022," it's not clear if you mean that was the total tax you had to pay for 2022 (your "tax liability") or if that is how much you still owed when it came time to file your tax return (tax due).

If you say, "I had $2300 in tax liability for 2022," it's clear to me that was the total tax you were responsible for in 2022.

I think the term "tax liability" is a clearly defined term with no ambiguity whereas "tax due" (or "tax" alone) is a little ambiguous.

Clear as mud?

Kinda like on the teevee when they say there's gonna be a snowy weather event. Or a ½ off sales event at the used car lot.

So.....According to Investopedia (on the internet), "Tax liability is the total amount of tax debt owed to a government by an individual, business, etc."

My Tax Liability is zero since I have 70$ tax on my taxable income and since I have already paid 200$ I will be getting a refund. (Getting a refund means I have no Tax Liability.) So, I should be putting Zero (0) on my Tax Liability line. However, the instructions say to put my 70$ tax on taxable income on the Tax Liability line (which should read zero, according to the definition of Tax Liability).

So, I will be putting 70$ on my Tax Liability line, which is wrong and untruthful since my Tax Liability is actually Zero. (Government forcing me to lie.)

I confess I'm not really fond of reading instructions, but am quite capable. I've been looking at the original post thinking something was missing--it is. I finally pulled the form and instructions this morning to verify. As you can see, line 18 actually says "Tax liability before credits". The last two words are the missing context. This is rather like a subtotal in a schedule of amounts. The "liability" specifies what this represents (i.e. total owed before adjustments). The computation goes on to subtract nonrefundable credits and then refundable credits (these items being treated differently due to their nature). Finally, it comes down to "tax due" or "tax overpaid" (whichever is the case).

Not to feel bad. My understanding is that when Congress was discussing changes for TRA86 (Tax Reform Act of 1986), after a few days, they finally sent an aide out to get copies of the form 1040 because no one knew what it looked like (they all had accountants preparing theirs).

Why doesn't line 18 say "Tax before credits?" Why is it necessary to add the word Liability?

JEEEEEEEEEESUS this is a weird hill to die on.