What are the three ways taxpayers can prepay?

Question

asked Feb 9, 2024 113k views

1 Answer

Howard Schutzman · Answer 1 · 2024-02-16T05:09:19+0000

Taxpayers can prepay their taxes through withholding from paychecks, estimated taxes, and prepayment of state taxes.

There are three ways taxpayers can prepay their taxes:

Withholding from Paychecks: Taxpayers can choose to have a portion of their income withheld from their paychecks by their employer and sent directly to the government as an advance payment of their taxes.
Estimated Taxes: Taxpayers who have income that is not subject to withholding, such as self-employment income, can make quarterly estimated tax payments to the government based on their estimated tax liability for the year.
Prepayment of State Taxes: Taxpayers can also prepay their state taxes, if applicable, by making estimated tax payments directly to the state government.