Saving on the federal income tax you owe is one of the main concerns of every taxpayer.  No one wants to pay the government more than they owe or they should.

You can save on your own federal income tax by maximizing your personal exemptions, your deductions, and the tax credits to which you are entitled. 

You can also save if you do not report income that is not taxable to begin with. While it is rare for a taxpayer to do this, occasionally a taxpayer will report an item of income for something they received, and refunded or was made as a gift rather than as reportable earnings. 

With respect to deductions, there are generally three kinds – deductions to adjusted gross income, deductions from adjusted gross income (known as itemized deductions), and business related deductions.  The standard deduction may be taken by taxpayers who do not itemize deductions, and in this case, replaces itemized deductions. 

Deductions to adjusted gross income are available to all taxpayers. They include things like retirement deductions, alimony, moving expenses, etc. You do not have meet any threshold deduction before you can take these.

Itemized deductions from adjusted gross income must exceed the standardized deduction before they can be taken. 

Business deductions are any and all ordinary and necessary expenses incurred in the course of operating a business. This includes home office deductions, automobile mileage, etc. 

There are many ways you can save on your federal income tax. The key is to have the right tools available to you to do so. Go to TurboTax Online today and let the experts help you start saving on your taxes today.