There are three basic ways to reduce your taxes, and each basic method might have several variations. You can reduce your income, increase your deductions, and take advantage of tax credits.

1. What you Must Know About Tax Breaks When Planning your Taxes
The goal of tax planning is to arrange your financial affairs so as to minimize your taxes. There are three
basic ways to reduce your taxes, and each basic method might have several variations. You can reduce
your income, increase your deductions, and take advantage of tax credits. Every tax payer likes to make
sure that the IRS gets as little as possible, and to ensure that it happens it is essential take every tax
deduction, credit or other income adjustment you can.
Here’s a quick look at a few tax breaks that often get overlooked but that could save you some tax
dollars.
Extra charitable gifts
Expenses incurred while doing charitable work often aren’t counted on tax returns. While it's not
possible to deduct the value of your time spent volunteering, but if you buy supplies for a group, the
cost of that material is deductible. The use of your vehicle for charitable purposes, such as delivering
meals to the homebound in your community or taking the Scout troop on an outing brings a deduction
of that travel at 14 cents per mile.
Moving expenses
When relocating to another job, moving expenses can be written off, and most taxpayers are aware of
the same. Fresh graduates who get a first job at a distance from where he or she has been living is also
eligible for this tax break.
Job hunting costs
While college students can’t deduct the costs of hunting for that new job across the country, already-
employed workers can. Costs associated with looking for a new job in your present occupation, including
fees for resume preparation and employment of outplacement agencies, are deductible as long as you
itemize.
Military reservists’ travel expenses

2. Members of the military reserve forces and National Guard who travel more than 100 miles and stay
overnight for the training exercises can deduct related expenses. This includes the cost of lodging and
half the cost of meals. If you drive to the training, be sure to track your miles.
Child Care Credit
Millions of parents claim the Child and Dependent Care Credit each year to help cover the costs of after-
school day care while mom and dad work. But some parents overlook claiming the tax credit for child
care costs during the summer. This tax break also applies to summer day camp costs.
Mortgage refi points
Refinance your home loan, allows a deduction of those points, too, as long as you use the refinanced
mortgage proceeds to improve your principal residence.
Retirement tax savings
The Retirement Savings Contribution Credit was created to give moderate- and low-income taxpayers an
incentive to save. When you contribute to a retirement account, either an IRA or a workplace plan, you
can get a tax savings for up to 50 percent of the first $2,000 you put into such accounts.
Educational expenses
The Internal Revenue Code offers many tax-saving options for individuals who want to further their
education. The tuition and fees deduction can help you take up to $4,000 off your taxable income and is
available without having to itemize.
Partner with an expert and to plan your finances in the best possible way. A dollar saved is a dollar
earned, When it comes to taxes, every dollar saved helps and taking the help of a professional will give
you the necessary support and guidance in all your tax planning issues.

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