Most people pay federal income tax by

Question

Quizplus · Accepted Answer

The most common way people pay federal income tax is by having amounts withheld from their income source, such as their employer. This is usually done automatically and ensures that individuals are paying their taxes throughout the year rather than having to come up with a large amount by April 15th. Filing quarterly tax payments may be required for those who are self-employed or have other types of income, but it is not the most common method for most taxpayers. Earning tax credits for various deductions is also important, but it does not pertain to how people pay their federal income tax. Similarly, cashing in savings is not directly related to paying federal income tax.

Most People Pay Federal Income Tax by