Tax avoidance

Tax avoidance is when people use legal ways to avoid paying taxes. This could be done by using special accounts or deductions to reduce the amount of taxes they owe. For example, some people put money into an account called a “401K” that they don’t have to pay taxes on until they retire. People also use deductions like donating to charity or taking certain credits that reduce their taxes. Tax avoidance is legally allowed and can help people save money, but it’s important to follow the rules so that you don’t get in trouble with the government.