Americans will spend more this year on taxes than on food, housing and clothing combined. But 78 percent of taxpayers don't even know what tax bracket they are in. Taxpayers are more inclined to clip coupons or negotiate a mortgage than do what it takes to reduce our largest bill of all — taxes.

In a tumultuous economic climate, taxpayers are trying to find ways to keep more of their money in their wallets. Last year, taxpayers overpaid the Internal Revenue Service (IRS) by $262 million. But with nearly 7.2 percent of Americans out of work, more homes under foreclosure and dramatic losses on Wall Street, getting the biggest refund possible has become a necessity.

Several events in 2008 may have implications for tax returns. With more than 500 changes to the tax code last year, it's easy to get overwhelmed or confused by its complexity. Taxpayers can use these tips to help get the maximum refund possible.

Unemployment: Unemployment benefits are taxable income. Taxpayers can complete Form W-4V — Voluntary Withholding Request to automatically withhold 10 percent for federal taxes. State taxes are not withheld through this form.

Severance: If a lump-sum payment such as a severance package brought annual income higher than last year, some credits or deductions that are normally claimed might not be available. Companies that provide lump-sum severances are generally required to withhold 25 percent to cover federal income tax. Social Security and Medicare taxes also apply. Some states, including Minnesota, require that state income taxes are withheld.

Job seekers: Taxpayers who have been unemployed for less than one year and acquired significant job-search expenses may be able deduct these costs. Out-of-pocket travel expenses to interviews or moving for a new job may be deductible, even if they are not itemized. Examples of other possible job-search expenses include:

• Unreimbursed business expenses while you were employed.

• Educational courses or certification related to your work.

• Tax preparation and tax planning fees.

Capital gains/losses: For the tax year 2008 and the next two years, taxpayers in the lowest two tax brackets (less than $32,550 of taxable income for single filers, $65,100 for those married and filing jointly) will have their tax liability reduced to zero percent on long-term capital gain. That applies to assets held for more than one year. In a constantly fluctuating stock market, it's critical to manage the tax implications of a portfolio. Only $3,000 of any capital loss can be used to offset ordinary income; a capital loss more than $3,000 can be carried to subsequent years.

Stimulus checks: The stimulus checks sent in 2008 are not taxable. However, the amount paid will need to be listed on the 1040 form so that if taxpayers' circumstances changed — anything from a job loss to having a baby — they may now qualify for the recovery rebate credit or for a greater amount.

In these uncertain economic times, it is important for taxpayers to claim every deduction and credit they're entitled to in order to get the maximum refund. Taxpayers need to stay organized, keep documentation and think about taxes before April 15 in order to file early and receive a refund as quickly as possible.

Myra Hykes, who has worked for H&R Block for 23 years, has prepared thousands of personal tax returns. She has been an enrolled agent with the IRS for the past 16 years, and was an auditor with the U.S. General Accounting Office for three years.  She has lived in Minnesota since 1966.