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Accrued income tax (Income Tax Payable) is a current liability. When the tax is actually paid it is reported on the income statement as Income Tax Expense.
Wiki User
∙ 14y ago
Wiki User
∙ 9y agoIncome tax paid is an expense, if payable then liability and if paid in advance then it is asset but never capital.
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How is deferred tax liability different from current tax liability?
Current Tax Liability is that tax amount which is actaully payable in current year.Deffered Tax liability is that amount of tax liability which is created due to difference in net income in income statement and income according to tax authorities.
Interperiod Income Tax Allocation causes?
... the income tax expense reported on the income statement to equal the amount of income taxes payable for the current year plus or minus the change in the future income tax asset or liability balances for the year.
The result of interperiod tax allocation is that?
The income tax expense on the income statement is the sum of the income taxes payable for the year and the changes in deferred tax asset or liability balances for the year.
Is Federal Income Tax a current liability?
In personal tax yes. In corporate, ther is both a current and deferredportion
How you compare unpaid income tax with income tax expense?
If I understand what you are asking, your question is in regards to C corporations or LLCs which have elected to be taxed as C corporations, and which use the accrual method of accounting. The income tax expense for the period would be listed as an expense on the income statement. The amount of unpaid income tax would be listed as a liability on the balance sheet as income tax payable (or some similar name).
Is deferred tax a current liability?
Yes deffered tax liability is created due to difference in taxable income as well as actual income which needs to be adjusted in next fiscal year as it is for only one year that;s why it is current liability.
The accounting procedure that accounts for most of the deferred income tax liability for most companies is?
depreciation expense
Is income tax an estimated liability?
is income tax estimated liability
Entry for Provision for Income Taxes?
You will need two accounts: Income tax expenses (an expense account, obviously) Provision for income tax (a liability account) You will simply: debit provision for income tax credit income tax expenses When actually paying income tax, you will: debit cash credit provision for income tax
Is deferred liability a current liability?
Yes deffered tax liability is created due to difference in taxable income as well as actual income which needs to be adjusted in next fiscal year as it is for only one year that;s why it is current liability.
Can you treat tax as expenses?
Tax is an expense on financial statements. However, income tax is an expense of the year in which the income was earned, not the year the tax is paid. For instance, income tax paid in 2013 for income earned in 2012 is an expense for 2012. You do not deduct as a 2013 expense the income tax paid in 2013 for earnings in 2012.
What is current tax liability?
YES. it is a current liability ,This is a specific type of accrued expense -- the income tax a company accrues over the year, but does not have to pay yet, according to various federal, state... If you are asking the differences between the two, it is pretty much straightforward. Current Liabilities are any liabilities that you owe and you can reasonably pay off in one-year or less.
