Slash your tax bill

If you were one of more than three million people who lost a job last year, don't forget that you can write off the cost of job hunting (see the quiz). And you may find that you qualify for some additional tax benefits:

A bigger refund
If you were laid off in July from a job where you made $100,000, you would have been taxed at the 25% rate, but your 2008 income will likely fall into the 15% bracket (bear in mind, however, that severance pay and unemployment benefits are also taxed).

Deduction for medical expenses
The threshold of 7.5% of adjusted gross income doesn't look so high if you're paying out of pocket for health insurance. In 2008, the average monthly premium alone for a family plan: $1,057, the Kaiser Family Foundation reports.

A stimulus check
The checks mailed last year were based on 2007 returns. If you lost your job in 2008, you could now qualify for a rebate check (or a bigger one). Use the calculator at irs.gov to determine how much you are eligible to receive, then claim the credit on your 1040.

NEXT: 2009 and beyond: Harvest stock losses