PARSIPPANY, N.J., April 7, 2005 - As its "Support Our Troops" month continues, Jackson Hewitt Tax Service (NYSE: JTX) identifies a number of deductions military members can take for qualified expenses when it comes to filing their tax returns.

 

"Jackson Hewitt supports our troops in a variety of ways, such as building morale and providing family support, but one of the most important is making sure our military understand all of the deductions they can take advantage of," said Mark Steber, Vice President of Tax Resources at Jackson Hewitt Tax Service. "Be sure to keep track of any job-related out-of-pocket expenses and deduct them. If you do not claim a reimbursement for expenses in which you are entitled, no deduction for those expenses is allowed."

 

Other special tax deductions for the military include:

 

Generally, unreimbursed travel expenses, including meals and lodging, are deductible if you must travel away from your main place of business to perform authorized drills and training duty. Other deductions common to the military are professional dues, subscriptions to professional journals, out-of- pocket educational expenses and certain uniform expenses. Unreimbursed employee expenses are deductible as miscellaneous itemized deductions subject to the two percent adjusted gross income (AGI) limit.

 

"Certain military travel expenses can be deducted, which could result in a larger refund. For example, reservists who travel more than 100 miles away from home, in connection with their performance of services as members of the reserves, may deduct their travel expenses directly on Form 1040 as an adjustment to income," says Steber.

 

Expenses for permanent change of station (PCS) moves, not reimbursed by the government, are deductible. You can deduct the costs of packing, renting a moving van, mileage on your personal car for the move, crating, in-transit storage and insurance (limited to a 30-day period) as well as travel expenses from your old home to your new home. You cannot deduct any expenses for meals. If you are under PCS orders, the time and distance test do not apply. You cannot deduct any moving expenses that the government reimburses you.

 

Military members may also receive up to $5,250 of tax-free educational assistance per year. The assistance is available for undergraduate- and graduate-level courses and is not reported on your W-2 or on your tax return.

 

Jackson Hewitt began its annual "Support Our Troops" campaign last year with its "Support Our Troops Banner Campaign," which placed over 4,900 banners in Jackson Hewitt office locations nationwide for employees, customers and area residents to sign with well wishes. The banners were then sent by the Army National Guard to troops around the world.

 

This year, as part of its continuing "Support Our Troops" campaign, Jackson Hewitt launched a national "Support Our Troops" Book Drive, running March 15 through April 15, at Jackson Hewitt locations nationwide. Books collected will be distributed by the Army National Guard to troops around the world. Jackson Hewitt is also sponsoring "Support Our Troops" Military Family Bowling events at seven military bases across the country.

 

Jackson Hewitt Tax Service Inc. (NYSE: JTX) is the second largest tax preparation service company in the United States, with over 5,400 franchised and company-owned offices in 49 states and the District of Columbia. Specializing in electronic filing (IRS e-file), the Company provides full service, individual federal and state income tax preparation and facilitates related financial products. Most Jackson Hewitt offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey. More information about the Company may be obtained by visiting the Company's Web site at www.jacksonhewitt.com. 

Contact Allison Jackson

Senior Manager, Communications

Jackson Hewitt Tax Service Inc.

973-496-7536

allison.jackson@jtax.com