Plan to lower your taxes. and credits.

Even though you may not be able to get away from paying taxes, you can take steps to lower what you pay. Try some of these ideas:

• Change your W-4 to reflect your current financial and family situation.
• Put away pretax money for health care, child or dependent care, and retirement using plans offered by your employer to reduce your taxable income.
• Max out contributions to your 401(k), 403(b) or 457 plans.
• Do not touch money in 401(k), 403(b) or non-Roth accounts until you are 59½. If you do, you will owe taxes and penalties on the money taken out.
• Contribute to an individual retirement account (IRA).
• Check for all the deductions, exemptions and credits Links to an external site. you are allowed.
• Put money into college savings for your children.
• Prepay on your mortgage (if you can take the mortgage interest deduction).

Remember, the federal tax system is progressive, so lowering your taxable income will lower your tax rate.

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