Income Taxes
Income taxes: A large expense for any business shown separately on the income statement after other income and expenses
Income taxes are a large expense for any business and, as such, the income statement lists it separately after other income and expenses. The income tax item includes only business income tax. Other types of taxes, such as payroll taxes, are shown as part of operations.
Income tax is often complex, and the amount shown is an estimate of taxes owed. Usually, the tax expense is the last line in the income statement before net income or loss.
