The 4 craziest ways people have legally avoided paying taxes

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April 18 is not as far off as it might seem, and if you put off filing taxes because you have to write a check to the Internal Revenue Service, you’ll eventually have to face the music. Everyone must file a tax return and most must send in a tax payment.

Believe it or not, a small segment of the population has found loopholes in the system to avoid paying some income tax — legally. Learn about the outrageous ways people have avoided paying taxes and start searching for your own loopholes today.

Unbelievable Ways People Have Managed to Avoid Paying Taxes

One way or another, most Americans are expected to pay taxes. Tax avoidance might be legal, but tax evasion constitutes a serious crime. Do either and you’ll likely end up paying a tax penalty.

Some taxpayers, however, are able to take large enough deductions or receive sizable credits, which might enable them to legally avoid paying taxes. The following people were lucky enough to avoid paying taxes:

3 Easy Ways to Legally Avoid Paying Taxes

You might not want to sue the IRS every time you’re turned down for tax deductions, but you could benefit from learning how to pay no taxes, legally. Here are three options to legally avoid paying taxes:

1. Qualify for Tax Credits

Many people don’t realize that a tax credit is the equivalent of free money. Tax deductions reduce the amount of taxable income you can claim, and tax credits reduce the tax you owe — and, in many cases, result in a nice refund.

The IRS offers a large number of tax credits that encompass everything from buying energy-efficient products for your home to being a low- to a moderate-income household. The key to benefiting from them is examining all of the purchases you’ve made throughout the year to see if you are owed money.

2. Take Itemized Deductions

Most people take the standard deduction available to them when filing taxes to avoid providing proof of all of the purchases they’ve made throughout the year. In addition, itemized deductions often don’t add up to more than the standard deduction.

But if you’ve made substantial payments for mortgage interest, property taxes, medical expenses, local and state taxes, or have made major charitable contributions, it could be worth it to take this step. These tax deductions are subtracted from your adjusted gross income, which reduces your taxable income.

3. Enroll in College

One way to take advantage of tax deductions or credits is to enroll in college. The government currently offers credits and deductions — you usually have to take one or the other — to go back to school online or in your community.

Students can take advantage of one of two education tax credits: The first is the American Opportunity Tax Credit, which offers up to $2,500 off the cost of tuition, fees and course materials paid during the taxable year per eligible student. Another credit to consider is the Lifetime Learning Credit, which offers up to $2,000 off the cost of tuition, fees and course materials. You can claim only one credit per year.

Students who don’t qualify for credits should consider tax deductions. The government allows qualified students to deduct up to $4,000 off the cost of tuition, fees and course materials. Although not as valuable as a credit, deductions can still lower taxes considerably.

Also, keep in mind that financial aid in the form of grants and work-study offer tax-free cash that doesn’t count as taxable income. Scholarships also help pay for school and are nontaxable as long as the money is used for school-related purposes.

There’s no doubt that it’s difficult to legally avoid paying taxes, but by taking advantage of credits and deductions, you could improve your chances of doing so. Or, if you’re brave enough, you could claim an outrageous deduction — then, when turned down, tell Uncle Sam you’ll see him in court.

Read: 13 Commonly Missed Tax Deductions

This article originally appeared on GOBankingRates.com: The 4 Craziest Ways People Have Legally Avoided Paying Taxes

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