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Declaring bankruptcy is focus of the final method that can be used to solve the tax problem. But proper care must be used if a person going to do this method because if IRS finds that you have cheated them then severe actions can taken against you. So, before choosing this method, consult a tax relief professional to discover if can be the most suitable choice for any person.

Contributing an insurance deductible $1,000 will lower the taxable income in the $30,000 1 year person from $20,650 to $19,650 and save taxes of $150 (=15% of $1000). For that $100,000 1 year person, his taxable income decreases from $90,650 to $89,650 and saves him $280 (=28% of $1000) - almost double!

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