Tax Software Tip

Many tax preparation programs ask a question like this:

Enter your 2003 tax liability.

What the software is asking for is your total tax from last year's tax return. On Form 1040, this is found on line 60. (Form 1040A, line 38, and Form 1040EZ, line 10.) This figure is used to calculate whether you owe any underpayment penalty (Form 1040, line 75).