Question

What are some ways to save money on your federal income tax?

Answer 1

Donate large sums of money to recognized charities.
Watch your stock sales so that you don't have an inordinate amount of capital gains.
Employ a good tax professional who will help you find all of your legitimate deductions.

Answer 2

1. Look at itemizing IF certain circumstances prevail (large donations, large medical expenses and that kind of thing).
2. Shift some of your income from taxable to non-taxable such as the purchase of municipal bonds.
3. Take advantage of selling stocks that fare poorly and have lost value and using that to off-set stock gains and dividends.

Note: I assume this is an assignment. The above must be used with caution and can not be seen as a fix for everyone. They will not work for everyone, either.