Remember charitable donations

Charitable donations is also one of the most important means of saving income tax on ones income. Most donations are often tax free and are one of the good ways to save taxes on the money you want to donate.

You can make your donations tax free, and if you show that you have donated a sum lesser than you actually have, then your that money is also not taxed. I.e.: You can make your donations tax free by showing a greater sum donated than you have actually donated.

For example: If suppose you have donated 1000 dollars, but in your receipts you have shown that you have donated 2000 dollars, then all the 2000 dollars are not taxed, and you save income tax on the 1000 dollars which you have not actually donated but shown in the receipts.

But you must remember, that for your donations to be deductible, they must go to a non-profit group, whether it is a church, or an orphanage or some overseas relief efforts organization, otherwise your charity would be wasted, if it was for the purpose of tax saving.

Donating for charity and keeping a receipt of the same also helps in tax deductions. This way you also satisfy your conscience by working for a noble cause without actually needing to pay taxes on the donations up to a certain level.