Deductions, which is money you can subtract from you overall income, can do wonders in reducing your tax burden, especially if you were job hunting last year, you had high medical bills or you’ve incurred business expenses that your employer hasn’t reimbursed you for. To deduct these expenses, you’ll probably have to itemize
. That is, unless the cost of these expenses is less than the standard (and easier) deduction.
For your 2009 tax return, the new standard deductions, which have increased due to inflation, are $11,400 if you’re married and filing jointly, $5,700 if you’re single or married and filing separately or $8,350 for heads of household, according to the IRS
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