Jackson Hewitt(R) Reminds Taxpayers About Commonly Overlooked Credits and Deductions

PARSIPPANY, N.J., March 30 /PRNewswire/ -- Year after year, taxpayers often overlook many pre-existing or newly introduced credits and deductions that may benefit them. Jackson Hewitt Tax Service(R), a leader in the tax preparation industry, notes several categories of consideration taxpayers should be aware of as they head out to have their 2006 tax return prepared and filed.

"Not taking full advantage of the many deductions and credits available to most taxpayers will cause many to end up 'leaving money on the table'," said Mark Steber, Vice President of Tax Resources, Jackson Hewitt Tax Service Inc. "Besides the new tax benefits that arise each year, there are many more that are available year after year that taxpayers may continually overlook. A recent life-stage change often opens up credits and deductions that taxpayers are not aware of when preparing their return."

Tax Issues Relevant to Life's Changes

When you have a significant change in your life - such as getting married, having a baby, or buying a home - taxes are often the last thing in mind, but each of these can trigger new credits and deductions.

  - Newlyweds married at any time in 2006 are considered married for the
    entire year for tax purposes, but they have a choice of filing jointly
    or separately. Couples who married in 2006 may now be eligible for two
    notable tax breaks. For married couples filing jointly, the 15% tax rate
    bracket has been expanded to $61,300 - up from $59,400 last year and the
    standard deduction for married couples filing jointly has increased to
    $10,300 on one's 2006 tax return - up from $10,000 deducted on last
    year's.
  - New parents can choose from a range of deductions for expenses both
    before and after the baby arrived, including the mother's prenatal
    doctor visits, labor and delivery room costs, mileage to the hospital,
    nursery fees, well-baby check ups and immunizations.
  - Adoptive parents may be able to obtain a tax credit of up to $10,960 for
    qualifying expenses, such as adoption fees to the organization
    sponsoring the adoption, court costs, attorney fees, and domestic and
    international travel costs.
  - Homeowners are eligible to deduct mortgage interest and real estate
    taxes that have been paid during the year.  They can also deduct the
    interest for a second mortgage, equity line interest, and mortgage
    interest paid on a second home.

  Recurring Credits and Deductions

Finally, there are numerous credits and deductions that are available to taxpayers each year, but are still often overlooked.

  - 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 or other
    dependent during 2006.

  - 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 2006.

  - The Hope and Lifetime Learning Education Credits - The Hope Credit
    offers filers up to $1,650 for each eligible student during the first
    two years of continuing education. A Lifetime Learning Credit of up to
    $2,000 is available to students until they complete their education
    program, or who take course work in order to acquire or improve job
    skills.

  - Self-Employed Health Insurance Deduction - Those who were self-employed
    during 2006 can deduct up to 100 percent of medical insurance costs for
    themselves and their families.

  - Student Loan Interest Deduction - The interest on student loan payments
    made during 2006 is deductible up to $2,500.

  * IRS Press Release (IR-2007-21, Jan. 31, 2007)

Taxpayers are encouraged to visit the Jackson Hewitt website at http://www.jacksonhewitt.com/ for a list of the top overlooked credits and deductions and other resources to consider when filing a 2006 tax return.

Jackson Hewitt has offices open around the country to assist customers with getting started or for help preparing a 2006 individual income tax return. To find the Jackson Hewitt office nearest to you, call 1-800-234-1040.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc., with over 6,500 franchised and company- owned offices throughout the United States during the 2007 tax season, is an industry leader providing full service individual federal and state income tax preparation. Most offices are independently owned and operated. The Company is based in Parsippany, New Jersey. More information may be obtained at http://www.jacksonhewitt.com/. To locate the Jackson Hewitt Tax Service office nearest to you, call 1-800-234-1040.

Contact: Jorge Lavina, CooperKatz & Company for Jackson Hewitt Tax Service Inc., 212-455-8041, jlavina@cooperkatz.com