Deductions for job hunting, education

(WTNH) - 2009 was a tough year for many Americans, and if you lost a job or went back to school because you needed to find a new one there are a few tax breaks you should know about.

If you received unemployment benefits, the first $2,400 are now tax free. In other words, if you got $5,000 in benefits last year you only have to pay taxes on $2,600.

If you lost your job and spent time looking for a new one, expenses such as preparing a resume, postage on mailing them, gas and parking for traveling to job interviews may all be deductible if you are itemizing deductions.

If you went back to school for retraining, you may be eligible for an education tax credit courtesy of the federal stimulus plan.

The $2.500 per student credit is available to all taxpayers with income of less than $80,000 or married couples who earn less than $160,000.