Date: 2012-09-24
PARSIPPANY, N.J. (September 24, 2012) – As 2012 begins to wind down, Jackson Hewitt Tax
Service® is reminding taxpayers to review any major life events that
occurred this year. Big life changes often result in equally large tax
implications, which may lead to extra savings when filing a tax return.
“There are many important tax
deductions and credits for life events, from having children to continuing
education,” said Mark Steber, chief tax
officer, Jackson Hewitt Tax Service Inc. “These changes are more common
than you might think and missing one when you file could leave deductions off
of your tax return, potentially lowering your refund. To make the most of your tax situation,
contact your local tax preparer now to learn how your life’s events this year
can equal major tax savings at tax time.”
Common life changes that can result in
tax benefits include:
- Getting married:
Tying the knot brings many exciting changes,
including a new tax filing status. Newlyweds and married taxpayers can
choose to file jointly or separately based on their individual situation.
Generally, using the ‘married filing jointly’ status provides the lowest
tax liability and the highest standard deduction
- Having or
adopting a child: Claiming a son or daughter
as a dependent may significantly reduce federal tax liability. A parent
may be entitled to a $3,800 exemption per dependent, as well as a Child
Tax Credit of up to $1,000 per qualifying child under age 17. Those who
adopt a child and pay adoption expenses may be able to claim a credit for
qualified expenses up to $12,650 per child.
- Continuing
an education (for yourself, spouse or dependent child): Up to
$2,500 of student loan interest paid may be claimed as a direct deduction
against your income. The loan must be for tuition, fees, books and other
qualified expenses for a student enrolled half-time or more.
- Working independently
or self-employed: Taxpayers who are newly
self-employed can directly deduct all expenses for their business against
their income. Expenses such as advertising, supplies, office supplies,
equipment, phones and the applicable costs of owning and driving a vehicle
are all allowed deductions that can reduce total taxes owed.
- Caring
for an adult parent: An aging parent may qualify as a dependent if the taxpayer is
responsible for 50 percent of the parent’s expenses, such as for food, medical
care and lodging. Expenses for assisted living facilities or nursing homes can
also count toward parental support if the taxpayer paid those costs. Taxpayers
may also be able to deduct any medical expenses being paid. Finally, when
paying for senior care, a credit of up to $2,100 may be available. If siblings
share in the support of the aging parent, only one of them may claim the parent
as a dependent.
“In addition to this list of life
changes, there are many others that may qualify for tax benefits,” Steber added.
“Not all online options can fully assist a taxpayer with these changes, so
working with a knowledgeable tax preparer can ensure that you take advantage of
the deductions and credits that are available to you.”
Many Jackson Hewitt
offices are open year round to assist taxpayers in identifying
the best tax strategy for their individual situation and circumstances. To learn more about common life changes,
please visit www.JacksonHewitt.com or call 1-800-234-1040 to find a local
Jackson Hewitt office.
About
Jackson Hewitt Tax Service Inc.
Based in Parsippany, NJ, Jackson
Hewitt Tax Service Inc. is an industry-leading provider of full service
individual federal and state income tax preparation, with nearly 6,500 franchised
and company-owned locations throughout the United States, including 2,800
located in Walmart stores nationwide, in the 2012 tax season. Jackson Hewitt
Tax Service® also offers
an online tax preparation product at www.JacksonHewittOnline.com. For
more information, or to locate your neighborhood Jackson Hewitt® office, visit www.JacksonHewitt.com or call
1-800-234-1040. Jackson Hewitt can also be found on Facebook and Twitter.
Contacts:
Jennifer Minchin
Jackson Hewitt Tax Service Inc.
(973) 630-0737
jennifer.minchin@jtax.com
Melissa
Connerton
CooperKatz & Company
(917) 595-3039
mconnerton@cooperkatz.com