Jackson Hewitt(R) Lists Credits and Deductions Most Often Missed By Taxpayers

PARSIPPANY, N.J., April 13 /PRNewswire-FirstCall/ -- Each year, many taxpayers miss out on hundreds of dollars in potential credits and deductions by simply neglecting to include them on their tax returns.  Given the wide range of changes made to tax law in 2009, Jackson Hewitt Tax Service® urges taxpayers who have yet to file to take the time to determine which credits and deductions may apply to their personal tax situation.

"A tax credit lowers your tax bill dollar for dollar, while a deduction reduces your taxable income," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc.  "Both can have a significant positive impact on your overall tax profile, whether by increasing the amount of a refund or lowering what you owe.  Yet many consumers overlook the wide range of credits and deductions that pertain to specific life changes, the kind of work they do or common events like pursuing higher education or going to the doctor."

Deductions Not to Miss

According to Jackson Hewitt's Steber, commonly-missed deductions fall into a few key categories such as:

• Education: student loan interest payments (up to $2,500 for payments made in 2009); parents with a qualifying child in school can also claim the Tuition and Fees Deduction, if they meet the eligibility requirements

• New Car: sales tax paid to buy a new vehicle are deductible (phases out for high income earners) – regardless of whether you itemize deductions or not

• Job: professional journals, magazines, and newspapers; required uniforms and work clothes not suitable for street wear; dues to professional organizations; and business expenses; also, through the Self-Employed Health Insurance Deduction, those who were self-employed during 2009 can deduct up to 100 percent of medical insurance costs for themselves and their families

• Real estate: the first $500 (or $1,000 if married filing jointly) of real estate taxes paid can be added to your standard deduction, or you can deduct all real estate taxes paid if itemizing deductions

• Medical:  crutches, canes, orthopedic shoes, hearing aids, eye glasses, contact lenses; hospital fees for services such as nursing, physical therapy, lab tests, and x-rays

Commonly-Overlooked Credits

Steber notes that there are a number of tax credits filers may overlook or not be aware of, including:

• The Earned Income Tax Credit: Changes to this credit for tax year 2009 include a new provision to allow those with three or more children a chance to qualify for up to $629 in additional credit, as well as increases in the amount of the credit and the income limits to qualify

• The Child Tax Credit: Taxpayers can claim up to $1,000 for each qualifying dependent child who was under age 17 at the end of 2009

• The Additional Child Tax Credit: Taxpayers who earned $3,000 or more and have dependent children under the age of 17 at the end of 2009 may qualify for a refundable credit up to $1,000 per child 

• The American Opportunity Tax Credit: The American Opportunity Tax Credit covers up to $2,500 (with 40 percent refundable) of qualified tuition and fees or related higher education expenses, such as books and software; the student must be enrolled in a qualifying institution for at least half-time, in one of the first four years of his or her post-secondary education

• Adoption Credit: Those who adopted a child and paid adoption expenses in 2009 may be able to take a credit for qualified expenses of up to $12,150 per child 

"During the final hours' rush, taxpayers need to ensure that they are not leaving money on the table," said Steber.  "Speaking with a knowledgeable tax preparer can help taxpayers identify and claim the credits and deductions they qualify for, which may make a considerable difference this year."

For a list of the Top 50 Overlooked Deductions or Overlooked Credits, please visit www.jacksonhewitt.com.  Taxpayers can also review Jackson Hewitt's Deductions@Work, a list of potential deductions based on an individual's job or career.

To speak with a local Jackson Hewitt tax preparer or find an office nearest to you, visit the online Office Locator or call 1-800-234-1040.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. (NYSE: JTX), with more than 6,300 franchised and company-owned offices throughout the United States, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated.  In addition, an online tax preparation product, Jackson Hewitt® Online, is available at www.jacksonhewittonline.com.  The company is based in Parsippany, New Jersey.  Jackson Hewitt Technology Services LLC is located in Sarasota, Florida.  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.

SOURCE Jackson Hewitt Tax Service Inc.