When it comes to taxes, credits are the preferred way to cut your bill. While deductions, either itemized or standard, reduce your amount of taxable income, credits cut your actual tax bill, dollar-for-dollar. That's because credits come into play AFTER your tax liability is figured. So if you owe Uncle Sam $500, a $250 tax credit will cut your bill in half.

You most likely think you can skip this article. After all, you're probably not self-employed, so you don't need to worry about paying quarterly estimated taxes, right? Not necessarily. Taxes aren't just meant to be paid on April 15. That's why we're blessed with tax withholding; it ensures that Uncle Sam is collecting revenue all year long. When this doesn't happen -- with self-employed citizens, for example, or investors with sizable dividend income or capital gains -- the IRS expects taxes on this income to be coughed up during the year. If your withheld taxes don't represent at least 90% of the taxes you actually owe for the current year, the IRS requires you to file quarterly estimates.

Is there a new baby in the house? That's good news in many ways, especially at tax time when the chip off the old block will help you chip away at your tax bill. A growing family makes you eligible for a variety of tax savings. You get an additional exemption, may be eligible for several credits and can use tax-favored ways to save and pay for Junior's college. You might even be able to lower your taxes by shifting some of your higher-taxed income to your youngster, either as an asset gift or as salary if you own your own business.

Your son is off at college. Can you still claim him as a dependent? The answer for most parents is "yes." But, as often is the case with tax questions, determining who can be claimed as a dependent is not always a clear-cut exercise. Dependent claims aren't limited to parents. An adult relative could qualify as a taxpayer's dependent as long as he or she meets certain Internal Revenue Service conditions. Making sure the requirements are met is critical because dependents can help reduce your tax bill. In many cases, you can claim certain tax-cutting deductions and credits related to a dependent.

They took care of you for years. Now it's your turn. Millions of adult children find themselves looking after aging parents. Tax laws offer some help, as long as you and your folks meet the criteria. The key to Internal Revenue Service assistance in caring for an elderly relative is whether you can claim the person as a dependent. Any dependent must meet certain tests. While there is a little flexibility when dealing with children, fewer exceptions are granted when the potential dependent is older.

Congratulations, you've just taken another step up the American-dream ladder and are a homeowner. Along with the joy of painting, plumbing and yard work, you now have some new tax considerations. The good news is you can deduct many home-related expenses. These tax breaks are available for any abode -- mobile home, single-family residence, townhouse, condominium or cooperative apartment. The bad news is, to take full tax advantage of your home, your taxes will likely get more complicated. You're not living on "EZ" Street anymore; you've moved to the 1040 long form and Schedule A, where you'll have to itemize deductions.

Appealing an assessment is neither arduous nor intimidating, says Amherst, Mass., real estate broker James Lumley, author of Challenge Your Taxes: Homeowner's Guide to Reducing Your Property Taxes (John Wiley & Sons, $19.95). Most disputes are settled not in a courtroom but in informal hearings with the assessor. "Usually, the process is not that big a deal," says Lumley. You're most likely to get a reduction if you find a factual error in your assessment. In that case, all you have to do is make an appointment with the assessor and bring proof -- such as maps, photos and floor plans -- that backs up your claims. If, for example, you show that your modest three-bedroom, one-and-a-half-bath house is described as a stately five-bedroom, three-and-a-half-bath manse, a reduction may be made on the spot.

Moving your family is never easy. But for some reason, many parents have the false notion that it's easier to move a child during the sun-dappled days of summer than to yank him out of school and move in a grayer season. Parents, heed the words of a woman who was forced to move twice during the summer months of her youth. I still live with the scars. Even with that warning, many families will move this summer. So if you must, beware not only of your child's mental health but of the surrounding tax implications.

A fantastic gain in the value of your home is, of course, a glorious thing. But there is a dark side: When it comes time to sell, you could owe a bundle in taxes. Most homeowners are fully aware that when selling a home married couples can completely shelter up to $500,000 from any federal tax hit, while unmarried folks can exclude gains of up to $250,000. This means that many home sales trigger no tax hit whatsoever.

BOSTON (MarketWatch) -- Who doesn't love a tax break? Who doesn't love a deduction? Surprising as it may seem, many seniors and their families operate as if they want to pay more than their fair share of taxes. For instance, Americans leave billions on the table by paying taxes twice, once on a deceased person's estate tax return and once on the inherited income from that estate, even though there is a deduction available in such cases for the estate-tax payment.