The child and dependent care credit is designed to help ease the tax burden of persons who must work and who also have the responsibility for the care of children or disabled dependents and spouses.

The IRS has established the child tax credit to help reduce your taxes. You may be able to take a credit on your tax return of up to $1000 for each qualifying child under the age of 17.

The tax credit for the elderly is available mainly to people who are 65 or older and don't receive Social Security or Railroad Retirement benefits. It also covers people under 65 who are permanently and totally disabled and receive a disability pension.

The earned income tax credit is designed for low-income taxpayers. It reduces the amount of income tax owed and partially offsets increases in living expenses and Social Security taxes.

Education credits are determined by the amount of your modified adjusted gross income and the amount you pay for qualified tuition and related student expenses for you, your spouse, or a dependent you claim on your tax return.

There are two ways an Individual Retirement Account, or IRA, can save you money on your income taxes. In an IRA, a worker is allowed to put aside up to $4,000 a year from employment income: $5,000 for those 50 years and older before 2008.

Contributions made to a political candidate, a campaign committee, a lobbyist, or a newsletter fund cannot be used as deductions on your return. However, many states may offer their own tax incentives to encourage more small campaign contributions and reduce the power of big contributors and special interest groups.