I'm filing a tax extension. What is "tax liability"?

If you're getting a refund, you don't need to file an extension. You can file anytime up to three years from the filing due date and still get your refund. A request for extension to file needs to be filled out if you think you're going to OWE taxes this year. You need to pay what you think you're going to owe. Your "tax liability" is the amount of money you paid in federal taxes for the tax year. If you're SURE you're getting a refund, don't bother with filing a request for an extension.

Your tax liability is how much your tax you owe the IRS, BEFORE any payments (withholding, estimated payments) are considered. Even if you expect a refund, your liability is NOT zero.

Look for the line that says "This is your total tax". That's the number I always use. On the next line you put "These are your total payments". I think that's the right number to use. Then you subtract and get a balance. Then you enter how much you can send. Your supposed to send all of your balance. I think the guy who said you don't need an extension if your getting a refund is correct. All the penalties and interest seem to be based on "amounts you owe". BUT. Send it anyway!