The use of legitimate methods to reduce one's taxes is tax ____________.

Question

Quizplus · Accepted Answer

Tax avoidance refers to the legal and legitimate methods used by individuals and businesses to lower their tax liability. It involves taking advantage of tax deductions, credits, and exemptions provided by the tax laws. On the other hand, tax evasion is illegal and involves intentionally underreporting income or overstating deductions to avoid paying taxes. Choices C, D, and E are also legitimate methods of reducing one's taxes but do not specifically refer to the overall strategy of tax avoidance.

The Use of Legitimate Methods to Reduce One's Taxes Is