This document provides tax tips and information for the unemployed for the 2009 tax year. It discusses: - Unemployment benefits are subject to federal, state, and local income taxes. The first $2400 of unemployment benefits is excluded from income. - Standard deduction amounts for 2009 based on filing status. Exemptions are $3650 each. - Itemized and miscellaneous deductions may be available, such as job search expenses which must be over 2% of adjusted gross income. - Examples of deductible job search expenses include resume preparation, employment agency fees, and travel costs. Documentation of expenses is required. - Various tax credits may also be available such as the Making Work Pay credit up to $

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2. Tax Tips For the Unemployed For The Tax Year Ended 12/31/09

6. Married filing jointly or Qualifying widow(er) - $11,400

12. Cost of advertising your services and newspapers and other periodicals you purchased to monitor help-wanted ads.

13. Travel expenses incurred in your employment search. This includes food expenses, lodging and transportation to and from another city to look for a job.

14. Employment and outplacement agency fees.

16. New graduates cannot deduct job search expenses if trying to get the first full-time job in their chosen career.

17. Deductions are not allowed if you took a substantial break between your last job and your search for a new one.

19. Mileage log for the car with start/finish odometer readings, date, and purpose of the trip.

20. The standard mileage rates allowed for the use of a vehicle are:

21. 55 cents per mile for miles driven searching for work.

22. 24 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service of charitable organizations.

24. Earned Income Credit Increased - For families with three or more children.

25. First Time Home Buyers Credits - Get $8000 from IRS

27. Unemployed status also opens a loophole for IRA contributions. IRA contributions aren't tax deductible if an employee is already covered by their employer's retirement plan. Being unemployed for any part of the year opens a window of eligibility.

29. Keep in mind that there may be additional credits and deductions that are not related to your employment status, however may still result in a significant tax refund like the Car Sales Tax Deduction. You can deduct the sales tax you pay on a new vehicle, if you buy it between February 17 and December 31, 2009. And you get this tax break even if you claim the standard rather than itemizing deductions on your tax return.For people who take the standard deduction on their 2009 returns, the sales tax deduction will be added to their standard deduction.

31. The unemployment rate, which is based on a separate household survey, hit 9.4% last month, the highest in 25 yearsJim doing job search