{"id":123192,"date":"2023-04-27T13:18:06","date_gmt":"2023-04-27T13:18:06","guid":{"rendered":"https:\/\/businessyield.com\/?p=123192"},"modified":"2023-05-02T09:33:48","modified_gmt":"2023-05-02T09:33:48","slug":"how-to-avoid-paying-taxes","status":"publish","type":"post","link":"https:\/\/businessyield.com\/tax\/how-to-avoid-paying-taxes\/","title":{"rendered":"How To Avoid Paying Taxes","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

As much as tax evasion is a punishable offense, there are legal ways to lower some or all of your tax obligation. Learn more on how to avoid paying taxes on savings bonds, alimony, or as an independent contractor without breaking any rules in this article.<\/p>

How to Legally Avoid Paying Taxes<\/span><\/h2>

The IRS provides Americans with a number of tax credits and deductions that can lawfully reduce the amount on your tax. All Americans should be aware of the deductions and credits to which they are entitled; failing to do so is equivalent to leaving money on the table. Here are steps you can take to reduce your tax bill.<\/p>

#1. Qualify for Tax Credits<\/h3>

Many individuals are unaware that a tax credit is essentially free money. Tax deductions lower the amount of taxable income you can claim, while tax credits lower the amount of tax you owe and, in many situations, result in a handsome refund.<\/p>

The IRS provides a plethora of tax credits ranging from purchasing energy-efficient equipment for your home to paying health insurance premiums to living in a low- to moderate-income family. The key to taking advantage of these credits is to go over all of your purchases for the year to see if you are owed money.<\/p>

Individuals can benefit from 17 tax credits divided into five categories:<\/p>