Don't miss out on tax deductions

Every year, the IRS dutifully reports the most common blunders that taxpayers make on their returns. And every year, at or near the top of the "oops" list is forgetting to enter their Social Security number at the top of the tax form. But the opportunity to make mistakes is almost unlimited, and missed deductions can be costly. About 46 million of us itemize on our 1040s, claiming nearly $1 trillion worth of deductions. Another 85 million claim more than a half-trillion dollars' worth of standard deductions, and some of you who do probably shortchange yourselves. To prevent that, here are some money-savers not to miss. moneypower@kiplinger.com
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You've probably been enjoying the fruits of this credit via reduced payroll tax withholding since spring 2009. But to lock in your savings (by reducing your tax bill by $400 if you're single or $800 if you're married and file a joint return), you'll need to claim the credit on your 2009 tax return. The credit is equal to 6.2 percent of your earned income, capped at $400 or $800, and like other deductions depends on your income.

15. Making work pay credit

(Michael Tercha, Chicago Tribune)

You've probably been enjoying the fruits of this credit via reduced payroll tax withholding since spring 2009. But to lock in your savings (by reducing your tax bill by $400 if you're single or $800 if you're married and file a joint return), you'll need to claim the credit on your 2009 tax return. The credit is equal to 6.2 percent of your earned income, capped at $400 or $800, and like other deductions depends on your income.