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For most of us, even hearing the word "taxes" raises the blood pressure a notch or two. And taxes are impossible to escape, because they come in so many different forms. Income, sales, excise, gift, estate, car, luxury, property... the list of different taxes goes on and on.

To build a sizable nest-egg for you and your family, you need to do two things:

  1. Maximize the money you are earning.
  2. Minimize the money you pay in taxes every year.

To effectively reduce taxes each year, you need a plan in place. Many choose to work with outside tax specialists who know the tax code inside and out. Others do their own research, managing their investments, doing their own tax returns, and ensuring that they're ready when April 15th rolls around.

No matter how you cope with your own tax problem, there are things that you can do today to dramatically reduce the taxes that you are paying.

In fact, the Taxpayer Relief Act of 1997 and the Economic Growth and Reconciliation Act of 2001 created hundreds of new tax breaks that you can use to reduce your annual tax bill. Plus, the Acts also increased the Unified Credit, currently set at $1,500,000.

Begin learning how you can become tax-savvy. Check your current income tax rates. Pick up some tax-reducing books, or even download IRS tax forms right from here.

Don't give Uncle Sam a penny more than you need to in taxes. After all, who knows how to better spend your hard-earned money... you, or the government?





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