[header] How to save money on taxes [title] Use tax credits. [step] If you are a low to moderate-income taxpayer, then you may qualify for the earned income tax credit. If you are making less than $50 , 000 a year, then it is a good idea to investigate this instant credit. 
This credit can save you thousands of dollars and will come directly from the tax that you owe. [substeps] You can also apply for the little-known american opportunity tax credit, which counts if you are pursuing a college degree.