Avoid Overpaying The IRS With Clever Tax Planning Strategies

By Stephen Z. Fulcher

Throughout each year, millions of working class citizens are required to pay in a substantial amount of their own income to the IRS as an income tax, but with a few good tax planning strategies, that amount can be reduced. If you're making a certain amount of money every year, you've probably come to dislike the dreaded tax season, when you are told to file your taxes only to find out that the IRS demands even more of your money. You don't have to keep sending in so much of your money each year, because putting some good strategies into practice can not only help you cut down on what you have to pay in at the end of the year, it could even earn you a check.

There are numerous strategies that require a little effort on your part to put to work, but you can always start your mission to save tax money by making sure that you are taking full advantage of whatever tax credits you may be eligible to receive. Though it might be fairly unlikely to miss out on getting your allotted tax credits, it is smart to take the time to go ahead and make one hundred percent certain that you are getting them.

You might actually wind up being able to receive more than one of the various tax credits that are available, but one of the better ones, as long as you earn within a certain range each year, is what is known as the earned income credit. If you are eligible for such a tax credit, you will be getting a beneficial amount of money that is meant to bring your income closer to that of the middle class workers.

If you're already earning well into the middle class range, one of the smartest things you can do to lessen the amount of tax dollars you pay throughout the year is actually reduce the amount of taxable money that you are making at your job. If you are enrolled or can enroll in any sort of retirement fund that takes contributions directly from your pay check, that money is tax free until it is withdrawn in the future, meaning you can subtract it from your taxable income.

If neither of those will work for you, you could work on changing your filing status so you pay more in now and get some back during tax season or submit a list of itemized deductions, among a few other things. There are quite a few more tax planning strategies apart from the ones mentioned here, and implementing any of them could help turn tax season into something not quite so dreadful.

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