Income tax expense are calculations of what is owed based on the standard accounting practices. Tax Payable is the income tax obligation that the company owes based on tax codes.

The difference in the income tax expense and the tax payable expense will even each other out. If the taxes are calculated higher in one year than the acutal taxes paid, there will be a future bill. If the company paid more, the bill will be less.

1) How is income tax expense calculated?

2) How is income tax obligation calculated?