Date: 2009-03-03

In Tough Economy, Jackson Hewitt Tax Service Urges Taxpayers to be Aware of Credits and Deductions That May Make a Positive Difference on Their Bottom Line

PARSIPPANY, N.J., March 3 /PRNewswire-FirstCall/ -- Year after year, many taxpayers miss out on tax refund dollars by failing to claim all of the credits and deductions available to them. This year, with more than 500 tax law changes, the chances of missing credits and deductions are even greater. Jackson Hewitt Tax Service(R) urges taxpayers to be aware of commonly overlooked credits and deductions--as well as new tax breaks--that may help increase their refund or keep more money in their pockets this tax season.

In addition to new tax laws, recent economic changes mean that some taxpayers may be eligible for deductions and credits that didn't apply to them in previous years. Since December 2007, more than 3.6 millions consumers have lost jobs, according to the U.S. Labor Department.* Millions of consumers also faced foreclosures on their homes, while others took advantage of depressed prices to buy their first homes. Those are just a few of the situations that could trigger a credit or deduction.

"In this economy, every dollar counts. There are new tax law changes that could help many taxpayers save money, plus long-time deductions that might be missed," said Mark Steber, vice president of tax resources at Jackson Hewitt Tax Service, Inc. "To maximize their returns, taxpayers should take full advantage of all the tax credits and deductions available to them."

When filing a 2008 tax return, Steber alerts taxpayers to pay close attention to these important credits and deductions:

-- Job seeking expenses: Taxpayers who searched for a new job in 2008, within their present field of employment, may be eligible to deduct some of the expenses incurred, including: travel expenses, the cost of printing, mailing, and creating a resume, the expense of a headhunter or job placement agency, lodging and meals if out of town, parking, tolls, long distance or cell phone charges, and even the expense of a physical exam if required by the potential employer.
-- Debt Cancellation: Homeowners who experienced foreclosure on their primary home can exclude the cancelled debt amount from their taxable income and potentially decrease their tax liability. In years past, the cancelled debt amount would have been considered taxable income to the individual that owed the debt.
-- Economic Stimulus Payment and Recovery Rebate Credit: Taxpayers who did not receive their full economic stimulus payment last year may qualify for the remainder as a Recovery Rebate Credit on their 2008 tax returns. This tax credit is available only to individuals who did not receive any of their credit as a rebate payment, or to those who qualify for a higher rebate based on their 2008 tax return information. Taxpayers who experienced a change in income or dependents in 2008 could be eligible for a higher rebate.
-- First-Time Homebuyers Credit: Taxpayers who purchased a new home for the first time after April 8, 2008 and before January 1, 2009, may qualify for a refundable credit up to $7,500. The credit is similar to an interest-free loan and must be paid back in equal parts over a period of 15 years, beginning in 2010. The repayment amount is included as an additional tax on the taxpayer's 2010 income tax return.
-- Medical Expenses: Taxpayers can deduct transportation costs such as tolls, parking, and mileage related to medical appointments -- including visits to health facilities, doctor's offices, and laboratories. In addition, medical aids such as crutches, canes, hearing aids, eye glasses, contact lenses and orthopedic shoes may also be deductible. To be deducted, total medical expenses for the year must exceed 7.5 percent of a taxpayer's adjusted gross income.
-- Real estate tax deduction: Taxpayers who pay real estate taxes and are not otherwise eligible to itemize deductions can increase their standard deduction amount by the lesser of: -- Real estate taxes paid in 2008 OR -- $500 ($1,000 if married filing jointly)

There are several other deductions that taxpayers should consider, including:

-- Interest paid on a student loan
-- Mileage incurred performing charitable activities
-- Select home office expenses (if the home is your primary place of business)
-- Alimony payments, but not child support
-- Half of self-employment tax paid
-- Points paid on a mortgage or refinancing
-- Payments made for health insurance by the self-employed
-- Contributions to a retirement savings account like an IRA
-- Required uniforms and work clothes that are otherwise not suitable for street wear

"Most consumers are unaware of all the tax considerations that may apply to their situations," said Steber. "Working with a knowledgeable tax preparer is one of the best ways to ensure you claim all of the deductions you deserve."

For more information, including a list of the most commonly overlooked tax credits and deductions, as well as credits and deductions that may relate to your specific occupation, visit http://www.jacksonhewitt.com/DeductionsCredits/. Participating Jackson Hewitt(R) locations are also celebrating select occupations with a special discount of $30 off tax preparation. Visit http://www.jacksonhewitt.com/DeductionsWork/ for more information. To locate a Jackson Hewitt Tax Service location nearest you, visit: www.jacksonhewitt.com and click on the Office Locator tab at the top of the home page.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,800 franchised and company-owned offices throughout the United States during the 2008 tax season, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. The Company is based in Parsippany, New Jersey. More information may be obtained at www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service(R) office nearest to you, call 1-800-234-1040.

Contact:
Sara Garibaldi
Ketchum (Public Relations)
646-935-4097
Sara.garibaldi@ketchum.com 

Ally Gellert
Ketchum (Public Relations)
646-935-3924
Ally.gellert@ketchum.com 

*Department of Labor, 2/6/09

SOURCE Jackson Hewitt Tax Service Inc.

-0- 03/03/2009

/CONTACT:
Sara Garibaldi,
+1-646-935-4097,
Sara.garibaldi@ketchum.com,

or

Ally Gellert,
+1-646-935-3924,
Ally.gellert@ketchum.com,
both of Ketchum (Public Relations) for Jackson Hewitt Tax Service Inc./ /Web Site: http://www.jacksonhewitt.com / (JTX)

CO: Jackson Hewitt Tax Service Inc.

ST: New Jersey
IN: FIN
SU: ACC ECO

PR
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7192 03/03/2009 14:00 EST http://www.prnewswire.com