Is it possible for someone to pay taxes now on money made in the future? Suppose you know you'll make $20,000 next year, can you pay taxes on that this year...meaning that you won't have to pay taxes on that money next year?
I don't see why not, that would be a great deal for the government as they are getting an advance on the taxes due to it.
2007-12-25 05:19:41 · 5 answers · asked by ? 2 in Business & Finance ➔ Taxes ➔ United States
The second answer is right. But, like he implies, don't forget that you can always put the money into a savings account. It will draw interest while you wait till you need it, and it will be there for you to pay your taxes with. If you pay earlier than necessary, the government can use the money right away and you lose the interest.
2007-12-25 05:33:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can always make estimated quarterly payments or have too much taken out of your paycheck. Then when you file your return, you can ask that any refund be applied to next year's taxes.
I'm not sure exactly why you'd want to do that though, since you're just giving the government the use of your money for a year or more, but if you want to, then yes you can.
That's for federal income tax only. You can't prepay social security and medicare if you are an employee, and might or might not be able to prepay state or local taxes, probably not.
2007-12-25 05:24:48 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You will have to file taxes every year and that means if you have paid more, you will get the refund when you file your taxes for this year.
2007-12-25 05:24:18 · answer #3 · answered by KB 2 · 0⤊ 0⤋
Why would you want to? A fundamental principle of money management is to pay your bills as late as possible, and collect money owed to you as soon as possible.
2007-12-25 10:33:02 · answer #4 · answered by r_kav 4 · 0⤊ 0⤋
if you want to sure...by the way i want a payment right now on the future loan i am gonna give you....
2007-12-25 05:28:19 · answer #5 · answered by wrathofkahn03 5 · 1⤊ 0⤋