Does your company offer a Flexible Spending Account?

I signed up last year to stash $500 of my money, pre-tax, for medical expeditures. Over the year, less than $10 per week of my paycheck has been deducted. And today, I got it all back tax-free. [Which is great, since I only make $1,000 a year.]

Plus this money can be used for claims on over-the-counter medications, which cannot be used as a deduction on federal taxes. Most common claims may be the co-pays for doctor's visits.

The cons to this are a result of not planning. Some people are paper-phobic and won't submit their claims before the end of the plan year. A few may have too much money deducted and not have enough medical expenses to get all their money back at the end of a year. It's a use-it-or-lose-it deal. If you have the money deducted from your paycheck, but fail to make a claim, then the money is gone after a year.

If you know you're going to need new glasses or your kid needs braces in the coming year, then you can prepare to deduct enough to cover those expenses.