Job-Hunting Expenses

• You cannot deduct job-hunting expenses for searching for your first full-time job. If you have had at least one full-time job before, however, and are looking for work in the same field, you may deduct these expenses. Deductible expenses include local transportation, travel and lodging expenses for out-of-town trips, resume printing fees, postage and employment agency fees. You may deduct half the cost of restaurant meals on an out-of-town trip. However, you may deduct only expenses that exceed 2 percent of your adjusted gross income.
  
  

Home Mortgage Points

• Home mortgage points are amounts paid to get a mortgage, representing interest on the loan. If you pay these amounts in advance to finance the purchase of a home, you may deduct the entire amount. If you refinance, you must deduct these amounts one year at a time --- 1/30 per year for a 30-year mortgage, for example. You may deduct all remaining amounts if you sell your home or pay off the loan incident to refinancing.
  
  

Energy-Saving Home Improvements Credit

• If you install a solar heating skylight in your home, for example, or make certain other types of energy-saving home improvements, you may deduct 30 percent of the cost from your taxable income, up to a maximum of $500 (as of 2011). The amount of this credit varies from year to year. Other examples of deductible improvements include biomass fuel stoves and energy-efficient furnaces. Hot water heaters, geothermal heat pumps and wind turbines are not subject to the $500 limit.
  
  

Tuition and Books

• The American Opportunity Credit applies to tuition and related expenses such as books. Strictly speaking, this is not a deduction --- it is a tax credit, which means that you deduct it from your total tax due rather than from your taxable income, saving you more money than a tax deduction would. As of 2011, this credit is limited to $2,500, as long as your adjusted gross income does not exceed $80,000 ($160,000 for joint filers). It is gradually phased out for taxpayers with higher incomes. If the credit exceeds your total tax due, the IRS will even refund part of the excess amount. This credit has been extended until at least 2012.