# Form 8854 question: tax liability



## snokem

Does anyone have any idea what "tax liability" refers to in Part IV or form 8854? Normally it means amount of tax owed. But if one reads the instructions, it seems implicit that it refers to "taxable income" or something like that.

Can I assume it means "tax owed" as it usually does?


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## quincy

snokem said:


> Does anyone have any idea what "tax liability" refers to in Part IV or form 8854? Normally it means amount of tax owed. But if one reads the instructions, it seems implicit that it refers to "taxable income" or something like that.
> 
> Can I assume it means "tax owed" as it usually does?


It means "tax owed". 

I looked at the instructions and don't see where you found reference to taxable income. The instructions don't give any information on line 1 for section IV, jumps right to line 2. From the IRS instructions for 8854 (2012):

"Part IV—For PersonsWho ExpatriatedDuring 2012

Section A—Expatriation Information

This section must be completed by all individuals who expatriated in 2012.
Line 2

You can use the balance sheet in Part V (Schedule A) to arrive at your net worth."


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## stmac79

I agree with Quincy. I went through the same exercise in trying to figure out what it meant for my 8854. I think it means how much tax you paid for each year. I simply used the figures from my previous 1040 forms.


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