Date: 2006-01-11
Jackson Hewitt® Provides Tax Season Filers Time- and Money-Saving Tips … With Less Than 100 Days to Go
PARSIPPANY, N.J., January 11, 2006 - Jackson Hewitt Tax Service (NYSE: JTX), the nation's second largest tax preparation service, continues its season kickoff with tips to help tax filers make the most of their filing experience. With three months until the filing deadline of April 17, tax filers get a jumpstart on their tax preparation, helping many to obtain their refund earlier and avoid the last-minute rush.
Tip #1: Verify W-2 forms and be one of the estimated 50 million taxpayers who will file their return over the next six weeks.
Approximately 40 percent of those who file a tax return do so before the end of February. That's because earnings statements from employers, also known as a Form W-2, are required to be distributed by January 31, 2006. Within the next three weeks, over 150 million W-2's will be released by small and large employers all over the country. Receipt of W-2's allows taxpayers to file their returns. Once you receive these forms, it's very important to verify them for accuracy and to make sure that your reported earnings match your year-end pay stubs. Also check that the Social Security number and spelling of your name are correct. By looking for these types of errors prior to filing, you can correct them quickly to avoid delaying any potential refund.
Tip #2: Consider electronic filing (e-filing) through a tax practitioner.
Last year, approximately 68.5 million households in the U.S. used tax practitioners to file their federal tax returns electronically, an 11.3 percent increase over 2004. The first day for practitioners to e-file is this Friday, January 13. Using tax practitioners that electronically file will speed up the refund process. "With e-filing, you typically receive your refund in half the time compared with mailing a paper return, the rates of accuracy are higher, and the IRS provides timely acknowledgement that they have received your return," said Mark Steber, Vice President, Tax Resources for Jackson Hewitt Tax Service. Even those who may owe money can benefit from e-filing. By completing your return now and electronically filing it, you have more time to determine your payment options before the due date of April 17.
Tip #3: Know how disaster-related legislation may impact your return - even if you are not considered a hurricane victim.
For those who were affected by Hurricanes Katrina, Wilma and Rita, several new tax deductions and credits now exist, thanks to the Katrina Emergency Tax Relief Act (KETRA) and the Gulf Opportunity Zone Act. "These laws provide tax breaks for casualty loss claims, taxable personal debt, calculating certain child-related tax credits, retirement account distributions and more," said Steber. Did you know that a significant portion of the legislation benefits those who contributed to make a difference? Tax breaks are available to taxpayers who housed individuals displaced by the disasters (up to $500 per person, to a maximum limit of $2,000), used their personal vehicles to assist with relief, or donated money or other charitable goods.
Tip #4: If you donated money or goods, you may be able to include these contributions on your return.
With so many Americans donating to disaster recovery programs, charitable deductions could be at an all-time high this year. Those who contributed may now be able to itemize - perhaps for the first time. Remember to include non-cash deductions, too. As Mark Steber explains, "Non-cash (item) donations are one of America's most overlooked tax deductions. At Jackson Hewitt, our Profiler software includes a product called ItsDeductible* that enables you to accurately value donated items in compliance with IRS guidelines, an easy way to turn those charitable donations into potential tax savings."
Tip #5: Understand the tax benefits that exist based on new tax changes, which may affect your bottom line.
For tax year 2005, several new credits and deductions came into play such as savings plan changes and energy credits. For example, to simplify the definition of a child previously used to qualify for a variety of credits and exemptions, there are now new considerations under the Uniform Definition of a Child that affect the five main tax benefits involving children. If you have a child and a corresponding tax benefit, look for tax resources to help you understand these new rules.
Taxpayers can visit the Jackson Hewitt website
(www.jacksonhewitt.com) for a number of resources that will help them get ready to have their tax return prepared, including:
- A list of items needed for organizing and compiling your return
- Information on the Top Overlooked Deductions and Top Overlooked Credits
- Job-related credits and deductions (through our Deductions@Work feature)
- Tax resources and explanations of new tax laws
Jackson Hewitt tax preparers are available nationwide to accurately prepare and electronically file your tax returns and provide up-to-date information on new tax rules for your 2005 tax return. Look out for more tips as we count down the days left to file your return.
*ItsDeductible and the ItsDeductible logo are registered trademarks of Intuit Inc., in the United States and other countries.
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 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
http://www.jacksonhewitt.com. To locate the Jackson Hewitt office nearest to you, please call 1-800-234-1040.
Contact
| Allison Jackson |
| Senior Manager, Communications |
| Jackson Hewitt Tax Service Inc. |
| 973-630-0681 |
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