Federal tax due refers to the amount of money that an individual or business owes to the federal government based on their income, profits, or other taxable activities. This amount is calculated after considering all applicable deductions, credits, and exemptions.
When you file your federal tax return, you will determine whether you have overpaid or underpaid your taxes throughout the year. If you have underpaid, the amount you still owe is referred to as the federal tax due. This amount must be paid by the tax filing deadline to avoid penalties and interest.
For example, if your total tax liability for the year is $10,000 and you have already paid $8,000 through withholdings or estimated tax payments, your federal tax due would be $2,000. This $2,000 must be paid by the tax deadline to fulfill your tax obligations.
It’s important to note that failing to pay the federal tax due on time can result in penalties and interest charges. Therefore, it’s crucial to accurately calculate and pay your federal tax due to avoid any additional costs.