How to lower your federal tax rate
There are basically two ways to get into a lower tax bracket: tax credits and tax deductions. Tax credits are a dollar-for-dollar reduction in your income tax bill. If you have a $2,000 tax bill One way to adjust your withholding is to prepare a projected tax return for this year. Use the same tax forms you used last year, but substitute the current tax rates and income brackets. Calculate your income and deductions based on what you expect for this year and use the current tax rates to find out what your projected tax will be.