Choose the correct term from each box.

Question

Complete the paragraph about tax returns.

The tax you owe, or liability, is computed from your
, which takes into account both adjustments and deductions. If your tax liability is lower than the amount of income taxes you have already paid this year, then you can expect
.

Answer 1

The tax you owe, or liability, is computed from your taxable income, which takes into account both adjustments and deductions. If your tax liability is lower than the amount of income taxes you have already paid this year, then you can expect a refund.