Understand Tax Deductions:

Deductions reduce your taxable income, lowering the amount of income subject to taxation. Common deductions include mortgage interest, charitable contributions, and certain medical expenses.

Keep records and receipts for deductible expenses throughout the year to substantiate your claims during tax filing.

Maximize Retirement Contributions:

Contribute to tax-advantaged retirement accounts such as Traditional IRAs, Roth IRAs, or employer-sponsored 401(k) plans.

Contributions to these accounts may be tax-deductible (Traditional IRA and 401(k)) or grow tax-free (Roth IRA), depending on the account type and eligibility.

Take Advantage of Tax Credits:

Tax credits directly reduce your tax bill on a dollar-for-dollar basis. Common credits include the Earned Income Tax Credit (EITC), Child Tax Credit, and education-related credits like the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit.

Research eligibility requirements and maximize credits applicable to your situation to lower your tax liability effectively.