What are some ways to save money on taxes?

“Taxes are unavoidable, but you can minimize the impact they have on your bottom line. Every scenario is different, of course, but one thing is universally true. If you’re like most Americans, you may be in search of new, creative ways to ease your annual tax burden. Fortunately, there are several things you can do to cut your taxes or increase the amount of your tax refund without incurring the wrath of the IRS. Tax credits and allowable deductions come and go as the IRS alters its rules and regulations from year to year. However, there are a number of ways to trim your taxes that are likely to remain applicable for a while.”

Doing your taxes yourself, online or with software, can save you hundreds of dollars. See more tax pictures.

If you feel like your accountant or accounting software sprinkles magic dust over your shoebox of receipts and then shakes a Magic Eight Ball to come up with the amount of tax money you owe every year, it’s time to take action — especially if you aren’t convinced that you’re receiving of all the deductions you deserve.

The first step is to understand the basics of federal taxes, including ways to save. Simply put: The more deductions you can claim, the less you’ll pay out-of-pocket (or the more you’ll get back) at the end of the fiscal year. If you’ve experienced any major life changes, such as a marriage or a new baby, then you can usually benefit from additional tax breaks. However, you don’t need a major life event to save money on your taxes. Commonly overlooked tax cuts include the deductions available for charitable gifts, moving expenses, job-hunting costs and transportation expenses sustained during volunteer work…

Read more: http://money.howstuffworks.com/personal-finance/budgeting/ways-to-save-money-on-taxes.htm

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