How to avoid overpaying when it comes to taxes

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income tax rates percent finance cuts IRS 1040 hike generic return. ISTOCKPHOTO via CBS News.

No one likes overpaying, especially when it comes to taxes, so what can you do today to keep our tax bill down?

First, look into pre-tax accounts. Consider opening retirement or flex spending accounts that you can contribute your pre-tax dollars too.

Flex spending accounts may be offered by employers, and the money can go towards things like commuting costs.

MORETax Credits vs. Tax Deductions

Second, look into earned income credit. The rules can get complicated, but if you have a job and have low to moderate income you may qualify.

This can save you anywhere between $500 and $6,000 dollars.

Third, check deductions.

Kimberly Palmer, money expert with NerdWallet said, “Child care costs for example are often tax deductible, if you have moving expenses related to a job, even if you have energy efficient upgrades in your home that’s often tax deductible.”

MORECredits and Deductions for Individuals

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