How to pay less taxes

How to Pay Less in Taxes
If you are paying too much in taxes there are a couple ways to get you in a lower tax bracket that will enable you to have more deductions or to have less taxable income.

Steps
1. Start thinking of next year's taxes this year.
2. Get a box or jar and start collecting records for next year because the most important thing you can do to reduce next years taxes this year is KEEP RECORDS of anything that might be deductible.
3. At tax time you will need to sort those records into likely deductions. Only you know what sorts of deductions you might be able to take. But here are a few examples of deductions that might help you on your way.
 Have a child or support a disabled person? Dependents qualify as a type of deduction.
 Taking college courses may be a deduction or you may be able to deduct the cost of courses as a work expense
 Get a hobby. Your hobby or hobby business can give you deductions.
 Purchase a house. Owning one or more homes means you can deduct payments and Interest on loans.
 Repair your house. Fixing up a home to make it more energy efficient can be a deduction. KEEP METICULOUS RECORDS.
 Buy a car. Buying an alternative fuel or electric vehicle can be a deduction.
 Get a loan. If you have certain types of loans (school/house) they could be deductible.
 Give to charity. Charities and Non-profits are a great ways to get rid of things you don't need or want any more. KEEP RECORDS.
 Work for a non-profit. You might get un-reimbursed mileage and other expenses. REMEMBER TO KEEP RECORDS.
 If you’re a teacher or volunteer at a school. There are deductions for things you buy out of your personal funds without reimbursement. KEEP RECORDS.
 Pay sales tax. In some cases, when you pay sales tax, it is deductible (especially keep track of those high-ticket items) KEEP RECORDS.
 Contribute to and IRA or open one yourself.
 Your alimony is deductable, so pay it!.
 Pay your medical bills. Un-reimbursed medical costs are deductible.
 If your in a disaster: some unimbursed costs may be deductible.
 There are other deductions available and your own individual situation will vary. Consult IRS.GOV
4. Take all the deductions you can. That's what they’re there for.
5. Hire a professional if your tax situation is complicated It will help you out because the money they save you often more then pays for their fees.
Tips
• Keep records in a convenient way. Take notes on the back of a receipt and file it for the end of the year. Put them in a file, box or drawer.
• Remember that even with paying taxes, you will still have lots of your own money left over to spend. Out of control spending and debit can make taxes seem like a burden at tax time. Each purchase you make is an investment in your future tax picture.
• Be aware of what lies ahead in the upcoming year by going to the www.irs.gov. Some tax deductions get eliminated each year and others get added.
• Check the IRS website.