As the end of year approaches, most of the people start looking for ways to save the money they would be otherwise be paying as income tax. This is the reason they look for income tax strategies. Now it would be sheer lunacy if you barge into your boss' office and demand a pay cut so you would be in a lesser bracket. The most effective of income tax strategies is to invest. Invest as much money as you can. There are a number of options like IRA, education funds for your children and of course stocks and mutual funds.