Income tax season is generally a very unpleasant time of year for both filers and preparers. However, filling out a tax return does not always have to be a doom and gloom situation. Learning how to reduce your taxes by doing a few simple things may actually result in a refund check.

Saving money for the future is a wise idea, so why not do it and reduce tax liability at the same time? Taxpayers have until April 15 of the following year in order to make tax-deductible contributions to an individual retirement account count as prior year deposits. Those who are self-employed can make contributions to an SEP or Keogh and these will be considered tax deductible.

Individuals who do not have a professional prepare their tax returns should carefully analyze their spending from the prior year. Expenses such as medical bills, dental work, and equipment or home improvements that were required due to a medical condition may be tax deductible. Even things as obscure as travel expenses for an interview, gambling losses, or the cost of a computer to manage financial assets can be tax write-offs.

Taking advantage of tax credits is another way for an individual to reduce tax liability. In any given year, there are credits for everything from summer day camp for a child to purchasing a hybrid automobile. Research available credits and claim whichever ones apply, even if deductions are being itemized. The general rule is that one dollar of credit offsets one dollar of tax.

Knowing how to reduce your taxes will make the filing process less painful on the pocket. Doing things like contributing to retirement savings accounts, listing eligible expenses, and claiming tax credits can reduce tax liability. In the most positive situations, taking these steps will provide an individual with some extra spending money in the form of a tax refund.