Date: 2006-02-06
Jackson Hewitt® Launches Weekly Tax Tips
This Week's "Tax Time Tip": New Definition of a "Qualifying Child" can Affect child-Related Tax Benefits
PARSIPPANY, N.J., February 6, 2006 - Jackson Hewitt Tax Service (NYSE: JTX), the nation's second largest tax preparation service, launches a weekly series, "Jackson Hewitt Tax Time Tips," providing time-saving information and advice to help make it easier for people to file their tax returns. Over the next several weeks, Jackson Hewitt will provide tax tips to help taxpayers make the most of their tax preparation session and the filing of their return, as well as identify key tax laws and their tax implications.
This Week's Tip: Learn about the new definition of a "Qualifying Child." The Working Family Tax Relief Act of 2004 created a standard uniform definition of a child, affecting key tax benefits involving children. A Qualifying Child must meet four new tests:
- Relationship Test - The child must be related to the taxpayer; a brother, sister, stepbrother or stepsister; or a descendant of any of the above (e.g., a grandchild, niece or nephew). "For example, children not related to the taxpayer who live with both the taxpayer and a parent will generally not qualify as a dependent for the taxpayer," notes Mark Steber, Vice President of Tax Resources for Jackson Hewitt Tax Service.
- Residency Test - The qualifying child must have the same primary home as the taxpayer for more than one half of the year.
- Age Test - In general, the child must be under age 19 or a full-time student under age 24.
- Support Test - The child must not provide more than one half of his or her own support.
It is important for taxpayers to understand the new child-related rules. Working with a trained, professional tax preparer can help taxpayers claiming a dependent learn about the tax implications and identify all of the credits and deductions to which they are entitled.
"Under the old rules, each tax benefit had its own definition of a child, a qualifying child and an eligible foster child," explains Steber. "Now, the term 'Qualifying Child' is no longer benefit-specific. Unlike prior years, the new rules have one definition for all five of the child-related benefits."
About Jackson Hewitt Tax Service Inc.
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 during the 2005 tax season. 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
http://www.jacksonhewitt.com.
Contact
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| Allison Jackson |
| Senior Manager, Communications |
| Jackson Hewitt Tax Service Inc. |
| 973-630-0681 |
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