Definition: Tax Liability - Examples & Advice | Bolder Money

1098 Mortgage Interest Statement 1098 Mortgage Interest Statement

Alternative Minimum Tax (AMT)Alternative Minimum Tax (AMT)

Capital Gains Tax Capital Gains Tax

Capital Loss Capital Loss

Child Tax Credit Child Tax Credit

Child and Dependent Care Credit Child and Dependent Care Credit

Dependent Dependent

Earned Income Tax Credit (EITC)Earned Income Tax Credit (EITC)

Estate Tax Estate Tax

Form 1040 Form 1040

Income Tax Income Tax

Itemized Deduction Itemized Deduction

Standard Deduction Standard Deduction

Tax Bracket Tax Bracket

Tax Credit Tax Credit

Tax Deduction Tax Deduction

Tax Filing Tax Filing

Tax Filing Deadline Tax Filing Deadline

Tax Filing Extension Tax Filing Extension

Tax Liability Tax Liability

Tax Loss Harvesting Tax Loss Harvesting

Tax Refund Tax Refund

Tax Refund Anticipation Loan Tax Refund Anticipation Loan

Tax Return Tax Return

Tax Shelter Tax Shelter

Tax Status Tax Status

Tax Withholding Tax Withholding

W 9 Form W 9 Form

Withholding Allowance Withholding Allowance

Definition

The total amount of tax you owe based on your income and applicable deductions and credits.

What to consider

Use losses strategically to offset gains on your taxes.
Plan the timing of sales to maximize tax benefits.
Review your portfolio to identify the best opportunities.

Real world scenarios

Mia calculates her estimated tax liability quarterly, adjusting withholdings if freelance income changes to avoid a large sum in April.
When Damon sells a rental property, he anticipates higher capital gains taxes, planning in advance to meet his increased liability.
A professional evaluation helps Lucy minimize her liability by identifying overlooked deductions, saving her hundreds in taxes.

Related terms

Reviewing: Taxes (20 of 30) ▼

← Tax Filing Extension

Tax Loss Harvesting →

Got Any Questions?

Talk to a Financial Coach

Book a free consultation with one of our coaches.

Book a Free Call

coaches@boldermoney.com

Coaching Platform Our Story Our Coaches Community Banks

Book a Call Money Quiz Playbooks Glossary Blog FAQ

Mortgage Payment Calculator Retirement Planning Calculator

No BS. Just good emails.

Thank you! You are now subscribed!

Oops! Something went wrong while submitting the form.

© 2025, Bolder Money

Terms & Conditions