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What are the three ways taxpayers can prepay?

User Gvl
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Final answer:

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

Step-by-step explanation:

There are three ways taxpayers can prepay their taxes:

  1. 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.
  2. 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.
  3. Prepayment of State Taxes: Taxpayers can also prepay their state taxes, if applicable, by making estimated tax payments directly to the state government.
User Howard Schutzman
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