MSN Money has a great article on some common tax deductions people overlook. Now is the time to start getting your paperwork ready for the 2009 tax season. Individual tax returns can be very tricky this year, considering all the changes in the tax code and government assistance.

Here are a few of my favorite 2009 tax deductions from the article to pay close attention to. Be sure to talk with your tax advisor about these:

• State Sales Tax: State sales tax can be deducted, especially in those states who do not have an income tax. There is a standard deduction which works for most people. However, if you made a big purchase in 2009 like a car or boat, you are good to go. Homebuilding material is also deductible.
• Job Moving Expenses: If you moved more than 50 miles for your first (or any) job, you can deduct moving expenses. This includes mileage if you drove yourself, parking fees, and tolls. With 2009 unemployment being so high, those who were able to get a job should take advantage of this tax deduction
• 2008 state tax: If you owed 2008 state income tax, then you can claim this amount on your 2009 taxes.
• Refinancing Points: You can deduct a percentage of your points paid for your home if you refinanced in 2009.
• Make Work Pay: Part of the economic recovery act(s) of 2009, this was a reduction in payroll taxes. Be sure to claim for yourself and your spouse if married, in order to get the 2009 tax deduction of $400 or $800 dollars

Any other tax deductions that you can think of that can be overlooked? Good luck to all in the 2009 tax season.

Remember that taxes don’t have to be this hard. Have you heard of the FairTax? This would eliminate the income tax system and instead replace that revenue with a retail sales tax (completely different than the VAT). Having the FairTax would simplify the tax system (you only pay taxes on new retail goods) and generate income from those who avoid the current system (illegal immigrants, black market) and bring the money currently overseas back to the US.

You can read more about the FairTax here.