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A married couple owned and have lived in their principal residence for at least two years during the past 5 years period ending on the date of sale, filing a joint return can exclude up to $500,000 and a non-joint return can exclud $250,000.
Form 2119 (sale of residence) has been discontinued by the IRS. The taxable gain after the exclusion will be reported on Schedule D.
You cannot deduct a loss on the sale of your residence.

Although you meet the income and dependent criteria, in order to claim the credit you must be at least 25 and under 65 years of age as of the end of the tax year.

Expenses that result from looking for a new job in a taxpayers's present line of work are tax deductible even if a new job is not found.
However, expenses of looking for a new job in a new trade or business, even if a job is found, are not deductible. Also, expenses incurred for a recent college graduate looking for his/hers first job are not deductible.

The standard deduction is $12,600 for married couples filing a joint return and qualifying widow's plus $1,250 once they reach age 65
$6,300 for singles and married individuals filing separately plus 1,550 once they reach age 65,
$9,300 for heads of household plus $1,550 once they reach 65,
Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions with expenses such as mortgage interest, real estate taxes, charitable contributions, medical expenses and state and local taxes.

The 2013 Personal Exemption amount is $3,900 per exemption.
The 2012 Personal Exemption amount is $3,800 per exemption.

For 2011, there is no phase-out of itemized deductions regardless of your adjusted gross income. The same no phase-out rule will apply to 2012.

The cost of purchasing an air conditioner is deductible (as part of your medical itemized deductions subject to the 7.5% AGI limitation)only if your doctor signifies that it is necessary for your relief from allergies or other respiratory ailments.

Eye exams, eyeglasses and contact lens, including equipment and materials for using contacts ,such as saline solutions and enzyme cleaners, can be listed as a medical itemized deduction on IRS Schedule A limited by the 10% / 7.5% AGI limitation..

Inpatient treatment and expenses for meals and lodging at a treatment center for alcohol or drug addiction are a medical itemized deduction.
Also transportation to Alcoholics Anonymous meetings are deductible.
They are reportable on IRS Schedule A limited to the 10% / 7.5% AGI limitation.

Generally cosmetic surgery is not deductible. However, Cosmetic surgery that is necessary to improve a deformity from a accident or disease is deductible.