Hi everyone and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm Laura Adams. This podcast is the last in our five-part series about taking

charge of your finances in 2010. Each episode in the series has been about a pillar of personal finance,

setting goals, saving, investing, and being properly insured.

Today's show is about how to legally cut your tax bill.

If you're like many people who work for an employer... how to legally cut your tax bill.

If you're like many people who work for an employer,

you may not know exactly how much you pay in taxes each year.

Of course, you know that taxes are deducted from your paychecks

and that you may be eligible for a refund at tax time.

But do you realize that taxes are probably your largest expense?

Because they take such a huge bite out of your income,

it's smart to reduce them in every way possible.

Now, I'm not suggesting that you do anything illegal to avoid paying taxes, but even the IRS

encourages people not to pay more in taxes than the law requires.

So how do you actually reduce taxes without skirting the law?

Here are the five best ways.

Strategy number one, Adjust your Withholding.

Many people have too much federal tax withheld from their paychecks.

You're in that boat if you receive a large tax refund each year.

I know it seems counterintuitive, but receiving a tax refund never helps

your finances. Consider this. When you file a tax return, you're really just settling up with

...