How are you saving on federal and state taxes this year?

Question

Will likely have a higher taxable income this year so I would want to hide a little from uncle same. I have 2 kids, contribute to comapny 403b and an IRA. I am thinking of opening 529s for my kids, any other ways?

Answer 1

Give 10% to your church.

Answer 2

Pay estimated state income tax in December--if nothing else, it'll save you some Federal

Answer 3

Rick B got it right.  Giving some money to legitimate charitable organizations is a good way to lower your tax bite,  keep in mind that itemized deductions start to "phase out" when your income goes above $159, 950.  Also, be sure you can substantiate your contributions with receipts.  The IRS has recently started to take a closer look at large contribution claims.

Answer 4

You can not "hide" it from uncle sam, without fraud.  Do you mean that you are looking for legitimate tax shelters?