Few of us want to pay more tax than we have to. Understanding the tax credits and deductions that we’re eligible for, and calculating them correctly, can mean the difference between owing more money at tax time or receiving a welcome refund. Here are three simple ways to minimize your tax liability.
Increase Retirement Contributions
The income tax you pay each year is based on your gross income, and for many of us, the easiest way to reduce that figure is by contributing to an employer-sponsored retirement plan or individually held traditional IRA.
