Sorry, but unemployment is taxable. You'll get a separate Form 1099-G for this, so it needs to go into your filing preparation package. Okay, you know what information you'll need to report your income. Now it's time to do the pre-tax preparation that could help you trim the taxable amount. Costs related to your home are a good place to start.
Homeowners know the value of a mortgage.
Not only does the loan get you into your house, but the interest you pay on it is deductible. Your lender will send you a Form 1098 with this amount. But now is the time to check out your loan amortization schedule and get an idea of just what the deductible interest amount will be. If you decide to make an extra mortgage payment this year to up that interest amount, make note of it. Sometimes lenders use automatic reporting programs that overlook extra payments.