| When it comes to taxes, we all want to reduce the | | | | it could be beneficial for only one to work. In many |
| amount we have to pay in. All tax planning basically | | | | situations, a stay-at-home spouse or parent not only |
| falls to looking at all of your options and keeping | | | | reduces the tax burden, but can save money |
| organized records throughout the year. With a little | | | | through reduced work-related expenses. |
| forethought, you can lower your taxes. There are | | | | Increasing your tax deductions is another way to |
| some basic ways to minimize your taxes: reduce | | | | reduce your taxes. It is better for you to itemize |
| your income, increase your deductions and take | | | | your deductions instead of standard deductions. |
| advantage of tax credits. | | | | These deductions include expenses for health care, |
| Your Adjusted Gross Income is a key in determining | | | | personal property taxes, mortgage interest, gifts to |
| your taxes. Your tax rate and tax credits depend | | | | charity, job-related expenses, tax preparation fees |
| upon your AGI. your AGI is your income from all | | | | and investment-related expenses. The easiest |
| sources minus any adjustments to your income. If | | | | method to itemizing your expenses is to keep record |
| you lower your total income, you lower your AGI | | | | of them throughout the year using a spreadsheet or |
| and the amount of taxes you pay will be | | | | personal finance program. |
| lessened.Your AGI is considered your true income | | | | Tax credits also reduce your taxes. There are credits |
| level. You can reduce your AGI through various | | | | available for college expenses, adopting children and |
| income adjustments. These adjustments are simply | | | | saving for retirement. There are two |
| deductions that don't have to be itemized. Also you | | | | education-related tax credits available. "The Hope |
| can contribute money to a 401(k) or similar | | | | Credit" is for students in their first two years of |
| retirement plan at work. These contributions reduce | | | | college, while the "Lifetime Learning Credit" is for |
| your total wages, therefore reducing your taxes bill. | | | | anyone attending college classes. And believe it or |
| Remember that what you never see you may never | | | | not, the classes can be in anything you wish -- they |
| really miss. | | | | don't have to be related to your work or career. |
| If one spouse earns significantly more than the other, | | | | |