Tax Liability: Understanding Joe's Tax Situation

What is Joe's tax liability for the year?

A) $1,372

B) $1,500

Final answer:

Joe's tax liability for the year is indeed $1,372.

Joe's Tax Liability Explanation

Joe's tax liability for the year is $1,372. This is the amount he owes the IRS for the year as he realized upon completing his Form 1040EZ tax return.

When one completes their tax return and is required to pay a certain amount, this is the amount they legally owe the IRS for that year - also known as their tax liability. In Joe's case, he properly completed his Form 1040EZ tax return and was required to pay the IRS $1,372. Therefore, his tax liability for the year was indeed $1,372.

Understanding tax liability is essential when filing taxes and ensuring compliance with the IRS regulations. It represents the amount owed to the government based on an individual's income and tax deductions. Joe's situation serves as a reminder of the importance of accurately completing tax forms to determine the correct tax liability.