• Numerous deductions are available to tax filers in the United States. However, exceptions and conditions apply, and you may not be eligible for many or any deductions depending on your financial status. As a result, planning ahead to take advantage of deductions is the best way to reduce your federal income taxes.
  
  

Contribute to an Individual Retirement Account

• You may be able to take deductions or credits for contributions to an Individual Retirement Account (IRA). This option actually doesn't require you to plan ahead. You may contribute to an IRA until tax day and have that contribution count toward the previous year's taxes. Be sure to tell your financial institution to characterize the contribution as a prior year contribution. However, take note of IRS regulations on adjusted gross income and IRA contributions; for example, a single person making more than $55,000 or married couple filing jointly making over $89,000 in 2009 may not be able to take a deduction or may be able to take only a reduced deduction.
  
  

Deduct Medical Expenses

• Medical expenses in excess of 7.5 percent of your adjusted gross income are allowable deductions -- if you itemize deductions instead of taking the standard deduction. Note that you can deduct only the amount that exceeds the threshold. For example, if your adjusted gross income is $20,000, 7.5 percent of your income is $1,500. If you spend $2,000 on medical expenses, you may deduct only $500. Eligible medical expenses include insurance premiums that you pay, doctor visits, prescription medicines prescribed by a doctor, surgery, hospital fees, mental health treatment, long-term care and many other expenses.
  
  

Take the Earned Income Tax Credit

• Many tax filers are eligible for the Earned Income Tax Credit and don't take advantage of it. According to the IRS, 20 to 25 percent of filers who qualify for the EITC don't take it. The EITC is available to some filers who work and earn less than a certain amount of earned income, $48,352 for the 2010 tax year. This threshold is reduced if you are unmarried and have fewer than three children. To qualify, you must have $3,100 or less of investment income for the year. The amount of the credit ranges from $1 to $5,666 depending on your tax status, earned income amount and number of children.