posted by Me on .
What are some ways to save money on your federal income tax?
Donate large sums of money to recognized charities.
Watch your stock sales so that you don't have an inordinate amount of capital gains.
Employ a good tax professional who will help you find all of your legitimate deductions.
1. Look at itemizing IF certain circumstances prevail (large donations, large medical expenses and that kind of thing).
2. Shift some of your income from taxable to non-taxable such as the purchase of municipal bonds.
3. Take advantage of selling stocks that fare poorly and have lost value and using that to off-set stock gains and dividends.
Note: I assume this is an assignment. The above must be used with caution and can not be seen as a fix for everyone. They will not work for everyone, either.