Collecting more taxes than is absolutely necessary is legalized robbery - Calvin Coolidge

The amount of income tax you end up owing the IRS is not a fixed amount. You can minimize your taxes by taking advantage of all the tax saving incentives and tax relief for the 2006 tax year.

Your tax preparer should be proactive in providing you with tax saving advice to help minimize the taxes you pay to Uncle Sam.

Individuals can claim 10% of the cost of energy saving home improvements. These include high efficiency furnaces, water heaters, central air conditioners, skylights and outside doors and windows that are installed in your primary residence after 2005.

Solar energy credits are now also available for homeowners who purchased solar units in 2006.

Hybrid car purchases made after 2005 are also entitled to a tax credit, which can be as high as $3,000.

Saving incentives include 401(k) maximum is now $15,000. Those born before 1957 can contribute an additional $5.000. All saving incentive plans have increased their contribution limits. Health Savings Accounts (HAS's) increased the amount to $5,450 for family coverage and $2,700 for individual coverage.

Social Security has also increased the earning limits for beneficiaries.