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in this video were going to discuss the difference between income tax expense and income tax payable so income tax expense represents all taxes that are accrued during the current period so the current year whatever income taxes are accrued it doesnt matter when the payment is actually going to be due if its accrued during the period using accrual accounting then its going to be booked to income tax expense now income tax payable on the other hand generally represents taxes that are going to be due within the next year so if its due within one year or the operating cycle whichever is longer its going to be a current liability its going to be income tax payables this is actual check that the firms going to need to write to the government in the next year so I want to give you an example itll make it a little easier to understand so lets say that youre a landlord and you rent out a house to a guy named Standing Bear and so hes going to take this house and hes going to make i