5 Must-Know Tax Tips for 2010


illu_afam Gotta love that tax code; You win some, you lose some. But it always pays to know recent changes, like these:

Lost your job?
Although you may owe taxes on your unemployment income, you can also deduct a slew of expenses relating to your job search and more, according to this info-packed piece on SavvySugar.

New tax bracket
If your job loss puts you in a lower tax bracket for '09, you may now qualify for certain tax breaks (e.g. the child tax credit, student loan interest deduction, savers credit, etc.). Grab 'em!

Tax credit for smaller incomes
If your earnings last year were low—whether working for yourself or someone else—you may now qualify for the newly expanded Earned Income Tax Credit, especially if you have kids. Qualified taxpayers with dependent children can get as much as $5,657 taken off their tax bill. Use this online worksheet to see if you qualify.

Making Work Pay credit
File Schedule M with your 1040 to get up to $800 taken off your tax bill ($400 for single folks) with the Making Work Pay credit—and it's available even if you're self-employed.

Deduct Donations to Haiti
Even though your donations to disaster relief in Haiti were made in 2010, you can claim them on your 2009 return, as long as they were made between Jan. 12 and Feb. 28.

For more tax breaks, we liked this article on SmartMoney.com.

Share your tax tips, hints and tricks with your fellow DW readers here.