Which of the following is not an acceptable method of reducing your tax bill?
A) Have a mortgage on your home with tax deductible interest
B) Increase your contributions to tax-advantage retirement accounts
C) Invest in municipal bonds
D) Have your paycheck deposited directly to an off-shore bank

Question

Quizplus · Accepted Answer

Having your paycheck deposited directly to an off-shore bank is not an acceptable method of reducing your tax bill as it is considered tax evasion and illegal. Choices A, B, and C are all acceptable methods of reducing your tax bill. Having a mortgage on your home with tax deductible interest, increasing contributions to tax-advantage retirement accounts, and investing in municipal bonds are all legal and common ways to reduce one's tax burden.

Which of the Following Is Not an Acceptable Method of Reducing