Date: 2007-10-31
JACKSON HEWITT® ENCOURAGES TAX FILERS TO
REVIEW RETURNS AND AMEND IF WARRANTED
Amended Returns Enable Taxpayers to Correct Information, Change Filing Status, Claim Overlook Deductions and Credits
PARSIPPANY, N.J., October 31, 2007 – For most people, its been months since they filed their 2006 individual income tax return…and years since they filed their 2005 and 2004 returns. For some, taking the time to review those items, especially before they start focusing on filing their next income tax return, can lead to additional tax savings. After a tax return is filed taxpayers may learn that they failed to claim available deductions and credits. All is not lost! Tax preparers with Jackson Hewitt Tax Service®, an industry leader providing full service individual federal and state income tax preparation, can assist taxpayers through the IRS amendment process.
“Many people believe filing an amended tax return will be a very hard task, thus some tax filers may deem it not worth the effort,” comments Mark Steber, Vice President of Tax Resources, Jackson Hewitt Tax Service Inc. “However, there is a pretty simple process for correcting mistakes and getting another chance to claim missed credits and deductions – possibly putting additional dollars in your pocket.”
In general, a tax return should be amended when any of these factors are reported incorrectly: filing status, dependents claimed, total income, and applicable deductions and credits. Mistakes made with mathematical calculations are most often corrected by the IRS processing center and do not require taxpayers to take action, but always check this as well…just in case.
To amend a tax return with correct information related to income or credits, taxpayers must file Form 1040X, Amended U.S. Individual Income Tax Return. On this form, taxpayers can list the numerical information found on the previously submitted return, the corrected figures, and the difference between the two.Additional supporting documentation, such as copies of a Form W-2 or any related schedules, must also be submitted.
On occasion, taxpayers may find it advantageous to amend their return to reflect a more applicable filing status. For instance, single parents may benefit from changing their filing status from ‘Single’ to ‘Head of Household,’ thereby gaining access to a larger standard deduction. Similarly, newlyweds, as well as other married couples, may benefit from filing jointly rather than separately. A knowledgeable tax preparer can assist be showing the advantageous of each filing scenario.
Another reason for amending a return is to claim overlooked credits. Failing to claim the Earned Income Credit, a popular yet complex benefit for working taxpayers and families, is one common mistake. Still another oversight may be neglecting to take advantage of a new, unfamiliar tax entitlement. For example, in filing their 2006 income tax returns, only 71.6% of all individual tax return filers have taken advantage of the one-time Telephone Excise Tax Credit, according to the IRS*. Those who paid taxes on a landline, wireless, or Voice over Internet Protocol (VoIP) service between Feb. 28, 2003 and Aug. 1, 2006 can still claim this credit (from $30 to $60 or more) by amending a previously-filed 2006 tax return.
“Taxpayers should remember to submit amended returns within three years of the date when their original return was filed, or within two years of the date when a required tax was paid, whichever is later,” explains Steber. He also notes that amended tax returns cannot be filed electronically and must be paper filed.
Many Jackson Hewitt offices are open year-round. To speak with a local tax preparer or locate a nearby Jackson Hewitt office, contact 1-800-234-1040. For more information, visitwww.jacksonhewitt.com.
* IRS Press Release, IR-2007-144, Aug. 21, 2007
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with over 6,500 franchised and company-owned offices throughout the United States during the 2007 tax season, is an industry leader providing full service individual federal and state income tax 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® office nearest to you, call 1-800-234-1040.
Contact:
Melissa Connerton
CooperKatz & Company
212-455-8001
Jorge Lavina
CooperKatz & Company
212-455-8041