I've seen tow hitches hooked to tacos two different ways. One is just a hitch ball stuck into the hole in the bumper and then the other way where it comes up from underneath the bumper. Is one way better than the other? Right or wrong?

 

Bumper mounts aren't as strong as true frame mounted hitches. So... the bumper mount is better for your departure angle and the frame mount is better for overall towing. Which ever one you already have is better for your wallet.

 

The bumper hitch is probably rated to about 2000# max, maybe less. The frame mount hitch should be rated to the full manufacturers rating (model/year dependent) assuming it came from the factory or is from a reputable aftermarket hitch supplier. For instance the quad cab taco is rated for 5000#.

If the hitch is from the dealer there might be a sticker on it somewhere with the rating.