THREE Simple Ways to SAVE MONEY on your Federal Taxes:
1 . Contribute to Retirement Accounts:
Put money into tax-advantaged accounts like a Traditional IRA or 401(k). These contributions reduce your taxable income now, and you defer paying taxes until retirement.
2. Claim All Available Tax Credits:
Don’t overlook valuable credits like the Earned Income Tax Credit (EITC), Child Tax Credit, or Education Credits (like the American Opportunity Credit). Unlike deductions, credits reduce your tax bill dollar-for-dollar.
3. Deduct Eligible Expenses:
Track & deduct qualifying expenses such as charitable donations, medical costs, student loan interest, and home office expenses if you’re self-employed.
***Every deduction lowers your taxable income.
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