Can you dodge taxes in a legal way?
Yes. The IRS has very graciously provided various tax credits and deductions to those who want to pay less in taxes. It’s extremely important to find out as much as you can about these tax write-offs so that you don’t pay much more than you have to. If you don’t know where to look, we’ve got you covered! Read on to learn how to save money on taxes in a legal way and discover some of the craziest loopholes people have used to lower their debts to Uncle Sam.
Make sure you also take a look at these 12 Weirdest Taxes You Probably Paid Across the U.S.
1. Qualify for Tax Credits
Many people might not be aware of the fact that a tax credit is free, easy money. Why leave it on the table? While tax write-offs lower your taxable income, tax credits are even better than that. They subtract directly from the tax you owe and, if you’re lucky, you can become the proud recipient of a nice tax refund.
There are plenty of tax credits you could qualify for, from making energy-efficient improvements to your home and purchasing energy-efficient appliances to being in a low- to moderate-income household. If you want to benefit from such tax rebates, make a list of all the purchases you’ve made in the course of a year.
There are 5 categories you could fit in, so make sure you check the IRS page:
- Education credits
- Family tax credits
- Healthcare credits
- Homeownership and real estate credits
- Income and savings credits