Date: 2006-04-06
PARSIPPANY, N.J., April 6, 2006 - Jackson Hewitt Tax Service (NYSE: JTX), the nation's second largest tax preparation service, continues its weekly series, "Jackson Hewitt Tax Time Tips." This week's timely tip highlights frequently overlooked tax credits and deductions that tax filers should ensure they do not miss as the rush to meet the fast-approaching filing deadline.
This Week's Tip
From the credit for child and dependent care, to the deduction for self-employed health insurance, dozens of overlooked tax savings opportunities are available to eligible taxpayers, but each year, many of these go unclaimed," says Mark Steber, Vice President, Tax Resources for Jackson Hewitt Tax Service Inc. "Many tax filers may be unaware of changes in the tax code. Working with a tax preparer can help taxpayers identify the credits and deductions applicable to their unique situations.
Top Overlooked Credits for 2005 Returns
- The Child and Dependent Care Credit - A nonrefundable credit (up to $2,100 for multiple dependents) is available to taxpayers who paid expenses for a dependent child under age 13 or disabled spouse during 2005.
- The Child Tax Credit - Taxpayers can claim up to $1,000 for each qualifying dependent child - an individual who was under age 17 at the end of 2005 and met the definition of a child under the Uniform Definition of a Child.
- The Hope and Lifetime Learning Education Credits - The Hope Credit offers filers up to $1,500 for each eligible student for a period of two tax years. A Lifetime Learning Credit of up to $2,000 covers students who take course work in order to acquire or improve job skills.
- Retirement Savings Contribution Credit - This credit (up to $2,000 annually) applies to those who contributed to an IRA or an employer-provided retirement account, such as a 401(k), during 2005.
Top Overlooked Deductions for 2005 Returns
- Deductible Mortgage Expenses - Taxpayers can deduct mortgage payments and points paid during 2005 to purchase a principal residence. Qualified taxpayers may be able to deduct points paid to purchase a second home, rental property or to refinance a mortgage loan.
- Self-Employed Health Insurance - Those who were self-employed during 2005 can deduct up to 100 percent of medical insurance costs for themselves and their families.
- Non-cash Contributions - Deductions for clothing, household goods and other items donated to qualifying charities during 2005 are available. The "fair market value" of the items is used to determine the deductible amount.
- Un-reimbursed Business Expenses - Expenses incurred during 2005 for cell phone charges, laundry expenses while traveling on business, the cost and upkeep of a uniform, business gifts up to $25 per item, as well as books, magazines and journals related to a professional field can be deducted on a tax return.
- Social Security Taxes for the Self-Employed - A deduction of up to one half of Social Security taxes paid during 2005 is available for self-employed taxpayers.
- Student Loan Interest- The interest on student loan payments made during 2005 is deductible up to $2,500.
Jackson Hewitt's lists of the Top 50 overlooked credits and deductions and other helpful taxpayer resources, including "What to Bring" to your tax preparation session, are available at
http://www.jacksonhewitt.com
Contact
Allison Jackson
Jackson Hewitt Tax Service Inc.
973-630-0681
Melissa Connerton
CooperKatz & Company
212-455-8001
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.