How can I reduce my taxable income?

One way to reduce your taxable income in Texas is to make sure to take advantage of all of the deductions available to you. Deductions reduce the amount of your taxable income, which means you will owe less in taxes. Some of the deductions available in Texas include deductions for retirement savings contributions, medical expenses, charitable giving, tuition and fees, and certain mortgage interest payments. Another way to reduce your taxable income is to make sure you are claiming all of the credits available to you. Credits are subtracted from the amount of taxes you owe, so they can help reduce your overall tax burden. Some of the credits you can take advantage of in Texas include a credit for child and dependent care expenses, a foreign tax credit, an elderly and disabled citizen credit, a credit for property taxes paid, and a credit for sales tax paid. Finally, you can reduce your taxable income by taking advantage of lower tax rates and filing status. In Texas, filing as "heads of household" can lower your taxable income, as can filing separate returns if you are married. There are also tax credits available for people with lower incomes, such as the Earned Income Tax Credit, which can reduce your taxable income if you qualify. By taking advantage of the deductions, credits, and tax rate or filing status that best fit your situation, you can reduce your taxable income in Texas.

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How can I reduce my taxable income?

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