Federal tax law can seem like a really complicated issue. But, it's important to every single one of us, since we all pay federal taxes each year. Each year, thousands of tax filers miss deductions to which they were entitled simply because they failed to know the federal income tax law. Though you may find it complex, it pays to understand federal tax laws, since doing so can help you save money when it comes time to file those taxes this year. There are many ways to save on your tax bill, but you must understand the federal income tax laws as they apply to you. Here are some of the allowable deductions allowed under federal income tax law. Here are a few method s to save from federal tax law.

Saving for Retirement - We all know we need to save for retirement, but not everyone is aware that saving for retirement is also a great way to save on taxes right now. Federal income tax law does, however, have limitations on the amount you can contribute tax free each year.

Adopting a Child - According to federal tax law, you qualify for a tax credit in the year that you incur qualifying expenses related to adopting a child. This however is not deductions but credits. Try reading more and it's important to research the details of how this credit works

Get a mortgage - Owning your own home is one of the biggest tax savings opportunities. The interest you pay on your mortgage is tax deductible, and in the first few years of a mortgage, most of your house payments go to interest, so you can save a bundle.

Paying for Education - According to federal tax law, the tuition that you pay for your college expenses or for the college expenses of your dependent qualify for a tax deduction. There are two types of education deductions; once called the Hope credit and one called the Lifetime Learning credit.

Go green - According to federal income tax law, many of your energy efficient purchases come with tax deductions. When you purchase home products, like replacement windows or a hot water heater, be sure they come with the government's energy star rating. Items with the energy star rating are subject to tax deductions of about 10% of the purchase price in most cases.

Contribute to Charity - Charitable donations are tax deductible. And the federal income tax laws regarding charitable donations don't just apply to cash donations, either. When you donate items like clothing and household items to charities that accept them, you can donate the value of the items donated.

Losing your job - According to Federal tax law, if you lose your job, any monies you receive as part of a severance package or any unemployment you collect is taxable. However, many expenses that you'll incur in looking for a new job are tax deductible.