Get the Best Secret Tips to Avoid Paying Income Tax

Tax avoidance is the legal means by which you can reduce the amount of tax that you pay. The best way is to take the advantage of the deductions and exemptions designed by the government so that you can reduce your tax liability. Taxes are the source of revenue for the government.

The money from taxes is used by the government to carry out various development activities. The government also designs different deduction and exemption schemes so that the citizens are motivated to invest their earnings in different saving schemes.

You can take the advantage of deductions offered by different saving schemes. There are different types of investment plans in which you can invest and save tax.

Invest for your retirement
The retirement plan offers you the tax deduction if you invest $14000 in 401(k) and 403(b). You can also invest upto $4000 of your pre tax income and apply for the tax deduction.

Make charity donations
Make charity, take the slip of the donation that you make and use the slip to file tax return.

Gift your heir
Gift your heir up to $11000 and save taxes. If both of you that is you and your spouse gifts your heirs an amount of $11000 then you can file a return of $22000 and save the amount that you pay to the government as tax.

Invest for your child education
This is one of the best ways to save the taxes besides investing for your child future. The amount is deductable till you use the amount for the education of your child.

Consult an expert in the field
Consult the lawyer and find out the ways by which you can avoid taxes. Most of us are unaware of different tax laws and the exemption schemes designed by the government. The layers and advisors can guide you and inform you about different schemes and plans which you can use to claim deduction and exemptions to reduce your tax liability.

Some of us do not disclose our whole income or property. This way most of us try to reduce the amount of tax that we pay. But the best way out of the situation is to consult an expert in the field who can suggest you some legitimate ways to avoid taxes.

Completely avoiding taxes is difficult. This is also not the right way to avoid taxes. This is because if the tax department finds out that you are not paying any tax then they can fine you for this. So the best way out is find out the tax liability that you have and find out the different deductions available so that you can file your returns and reduce your tax liability.