-tax brackets and exemptions

Every year, the Internal Revenue Service or IRS provides a list of tax brackets and exemptions to guide filers. In a simplified approach, tax brackets can be considered as the minimum income rate of qualified taxpayers. Those who earn below the set tax bracket for the year are not required to pay taxes. Tax exemptions, on the other hand, are actually discounts for individuals who have filed certain civil status like married, qualified widower and head of household. Those who want to avail of these tax return filing exemption for 2010 must submit separate documents as proof.

-deductions

Aside from exemptions, taxpayers could also enjoy discounts such as tax deductions.  These deductions entitle a tax payer with more tax refund. Some of the most common deductions that you should avail of are the following:

                   -medical expenses: health insurance, payment for doctors and dentists, medical equipment, costs of prescription drugs, physical therapy fees, payment for doctor prescribed eyeglasses, contact lenses and weight loss programs

                   -paid state and local taxes: state income tax, personal property tax , state unemployment or disability tax and some real estate taxes

                   -charitable contributions: Contributions in cash or check given in small amounts or regular basis can also be considered. If you can’t get a receipt, make sure that you note how much you have contributed to charities. Remember that the charity must be accredited by the government. Religious institutions such as church, mosque and temple are also qualified.