We're all looking for ways to save money. And, one of the best places to look for savings is in your taxes. There are lots of ways to reduce your taxes; so make sure that you're taking advantage of each and every one that's available.

Reduce your taxes by making your home energy efficient. When it's time to make home improvements, be certain that you're making energy efficient ones. Not only will buying, let's say, an energy efficient hot water heater save you money on your utility bill each month, but if you purchase a hot water heater that is Energy Star rated, you'll reduce your taxes in the year you purchase it, as well. Energy Star is a government program for rating the energy efficiency rating on products. So, be certain when you purchase large appliances, or other things like replacement windows, that they come with the energy star rating. Save your receipts and use them when you file your taxes to figure the deduction. The deduction is typically 10% of the cost of the appliance; for replacement windows the maximum deduction is $200.

Make your home solar - You to claim a credit for 30% of the cost of installing solar water-heating, photovoltaic, or fuel-cell equipment in your home, up to $2,000 total. No credit is allowed for equipment used to heat a swimming pool or hot tub. Again, this is a great way to reduce your energy expenses month after month and reduce your taxes.

Buy a hybrid car - You can reduce your taxes by purchasing an energy efficient car, like a hybrid. There are tax credits available for a variety of fuel efficient automobiles. Check out the credits before you buy - in some cases you can qualify for over $3000 in tax credit. In addition, you'll save money on fuel each and every month that you own the car, and you're doing the environment a favor, too.

Take a look at your stock portfolio - If you have some stocks that have tanked since you purchased them, now's the time to sell them. When you sell stocks at a loss, you can deduct the loss from your taxes. And, when your stocks are doing well, you'll reduce your taxes when you sell them by holding on to them long term. Long term capital gains taxes on stocks are around 15%, while short term capital gains taxes can be up to 30%. So, if you're thinking of selling a good stock, be certain to check on how long you've held it.

There is a killer on the loose that can steal, kill, and destroy the economy: high taxes. In areas of the world where taxes are very high, economies are generally very weak. Where taxes are low, economies are usually much stronger. Clearly, the advantage for any government is to keep taxes in line in order to keep the economy humming. Let’s take a look at just how low taxes can fuel economic growth.

Some politicians fail to grasp an essential point when it comes time to raising taxes: the more taxpayers have to pay in taxes, the less discretionary money they have available to them. Specifically, high taxes hurt because:

Businesses have less to invest. The bottom line for every business is profit. When a business makes a profit, they have more money to spend on other things including: hiring additional employees, expanding their business, contributing to the local economy, etc. New employees, means more tax revenue as employees pay social security taxes, incomes taxes, etc. More profit means that the business will funnel some of those profits back into the business in the form of expanded services, a newer building, the purchase of goods and services, etc. In addition, the local economy benefits when a business is thriving through their share of property taxes paid, and discretionary funds to donate to local causes, community events, even state backed groups such as the symphony. Raise taxes too much and it will have a ripple effect on the way that businesses help out the local market.

Consumer confidence nosedives. Consumers who feel too much of a tax burden will pull back and not spend. When consumer confidence drops, everyone suffers. The purchase of vehicles, homes, discretionary goods, and the like will drop. Instead of purchasing higher end items, consumers will opt for the best prices thereby threatening entire areas of discretionary spending. On the other hand, if consumers believe that they have enough to live on, they may go ahead and purchase that new vehicle now instead of waiting a year or too. Guess what? The state government reaps a nice tax on the purchase of a new vehicle too!

Cash strapped governments often plead for additional revenue through higher taxes. Instead of resorting to automatic tax increases, taxpayers should demand that governments consolidate services, trim expenses, and put a freeze on hiring until they get their house in order. Failing that, consumers and businesses can expect stifling increases that can only hurt the economy.

State Income Tax: Know the differences between the states!

With the advance of technology, fax machines and the internet many Americans are more mobile than ever before. They can operate their money making businesses from the beach or the mountains or anywhere in between.

One thing they all have in common is the constant search to lower their tax burden. One important component of the total tax burden is the payment to state income taxes. So if you are considering moving, taxes and state income taxes should be something for you to consider. Surprisingly, there are seven states that levy no state income tax.

Paying federal taxes is the biggest burden but coming up fast are the growing state income taxes.

If you are considering relocating to a new state, your overall tax liability should be something for you to consider. Specifically, there are a number of states with no income tax. Of course, depending on your earnings, living in a state with no income taxes can potentially save you hundreds if not thousands of dollars every year at tax time.

The seven states with no state income tax are: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

If you are thinking of moving four states with no income taxes have ocean beaches, although Alaska is not well known for their beach resorts. When it comes to mountains, Alaska has plenty although a bit of a long winter season, Washington and Wyoming both have beautiful mountain areas. Nevada has some striking mountain areas near Lake Tahoe. South Dakota can claim some "black hills," and some sand bars along the Missouri River but no beaches or mountains.

Two other states do technically collect income tax, but for all practical purposes, they could be added to the no income tax group. Both Tennessee and New Hampshire do not collect a tax on your earnings, but they do collect state taxes if you receive dividends. Under state tax law, dividends are technically considered to be income so neither Tennessee nor New Hampshire are states with no income tax.

At first look, a lack of state income tax may seem like a great benefit. Generally, this is true, but you need to do your homework. Many of the no income tax states make up the difference by collecting taxes in other ways. Each state is somewhat different; some have high relative state sales taxes or higher property taxes.

The exceptions are Alaska and Nevada. Alaska collects most of its taxes from oil royalties and taxes on the oil companies. Nevada generates most of its revenues from the gaming business.

If you are considering moving to another state, the overall area tax burden is something you should carefully take into consideration. State income taxes are only one part of the tax cost picture. With careful research, you'll have an accurate tax picture when comparing states.

American citizens and residents (and even some non-residents) have unwanted partners. They come in the form of federal, state and local bureaucrats. They always need the money. This money can be squeezed from partners known as taxpayers.

We must pay income taxes when income is generated. Making substantial gifts to others may lead to gift taxation. Estate (death) taxes may come into play when your property is passed to heirs after death.

In today's America, taxes are as common as an apple pie. Many families are losing a big chunk of their income and wealth to taxes.

Financial products and services aimed at tax reduction are in high demand. Slogans and descriptions implying "tax savings" have a pretty high appeal to taxpayers. In some cases, the claims of tax savings are true. In other cases, such claims are highly exaggerated and outright untruthful.

Living trusts are no exception. "Saving taxes" is what compels many people to set-up living trusts.

Unfortunately, this conflicting information comes from sources that may appear to be reputable by consumers. Such sources include attorneys, CPAs, financial and estate planners, consumer groups and government entities.

So, do living trusts save taxes? The answer is pretty simple. It depends on the type of trusts you set-up and fund.

Revocable living trusts do not affect your tax liabilities one way or the other. Any tax planning you can do with such trusts can be done by other means. These "other means" are frequently much less costly and time consuming than living trusts.

If saving taxes is your only concern, you can achieve this goal without setting-up revocable living trusts.

Irrevocable trusts, on the other hand, can be used to reduce the tax burden. Such tax reduction can be very substantial. Properly designed and drafted irrevocable living trusts can indeed reduce your income, estate and gift taxes.

Irrevocable trusts can also provide an additional layer of protection against potential creditors.

Living trusts require your time and resources. But, they can help you achieve goals not possible with other planning tools. Whether or not your trusts can save taxes depends on the specific trusts you set-up.