11 Steps for Reducing Your Taxes
By now, you're aware there's no magic bullet for reducing your taxes. But you can take several steps to reduce your overall tax bill this April. Here are 11 items to consider before filing your federal income tax return:
Double check your math. It seems obvious, but the IRS cites bad math as one of the most common errors it sees on tax returns. So check your work. Make sure you haven't accidentally transposed any numbers or double reported income. Reporting too much income artificially inflates your tax bill -- and under-reporting can result in penalties and interest.
Review tax changes for the year. The Tax Code changes every year, sometimes at the rate of more than one change per day and 2010 was no exception. Some changes, like the AMT patch, weren't pushed through until the end of the year. In most cases, these changes mean good things for taxpayers. Don't miss out on new credits, new deductions, and lower thresholds for qualifying for tax breaks. To get an idea of what's new for 2010, check out this post.
