If you are unemployed or were unemployed in 2009, you want to make sure not to miss out on many deductions and exemptions available this year.  To help you navigate this year’s returns, Andrew Kucheriavy has put together a checklist of things that you should keep in mind as you prepare your return. Here are some highlights from his article:

2009 Stimulus Package for Unemployed

The 2009 bill signed by President Obama makes the first $2,400 of unemployment income nontaxable.

Deductions for Spending Money on Job Searching

If you were job hunting in 2009, you may be able to deduct many of the expenses incurred while looking for a job.  Anything you spend on creating, printing and mailing your resume is deductible and so are the fees for resume writing services, career coaches or headhunters.  You may also write off phone charges associated with your job search, as well as transportation costs: miles driven to an interview (including parking and tolls) or plane, bus or train fare, for example.

Claiming Your Unemployed Spouse on Your Return

If your spouse has lost their job, you can claim them as your dependent to get a tax credit.  If you have been paying for their living costs, you qualify to receive a tax credit.

Expanded Earned Income Tax Credit

Many couples who file jointly and have children qualify for the expanded Earned Income Credit. The credit increases for families with three or more children to 45 percent (5% increase) of the first $12,570 of earned income.

Health Insurance Assistance for Unemployed

Lowered cost for COBRA health insurance is a valuable benefit for workers who lost their health insurance when they lost their jobs. This government subsidy is designed to help unemployed people keep their health insurance.

Making Work Pay Credit

If you have been working for a part of 2009 or your spouse is working, you are entitled to a payroll tax credit for 2009 and 2010 of up to $400 a year for single taxpayers, and up to $800 for couples filing jointly.

Carefully study the full list of the deductions and credits to which you may be entitled because of your unemployed status, before filing tax returns this year by reading the full article, Filing Taxes while Unemployed? Tax Tips to Maximize Your Refund This Year.

As always, consult a professional if you are not sure and always make sure to keep your receipts.  You can write off tax preparation fees so it may be a good idea to get a second opinion even if you typically prepare your own returns. Some tax professionals even offer discounts for unemployed so make sure to ask them about it.

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