You need to advise a taxpayer on how best to relieve their income tax liability and avoid interest and penalties. Help specify methods they can use, and the process of each. For each of the following, explain 1. what they are, 2. how they are filed/claimed, and 3. how they affect a taxpayer's tax liability. Mention what forms to use where applicable. Please do not forget to explain their effect on the taxpayer's tax liability at the end of the year (increase or decrease?).

1. estimates

2.federal income tax withholding

3. Tax credits (give examples of credits available to individual taxpayers).