Pre-Tax Season Check-up Helps You Maximize Your Options

Smart planning now can improve your tax situation for the coming tax season

PARSIPPANY, NJ (Tuesday, August 30, 2005) - Early filers, get ready! Tax season kicks off in just four months. Now is an ideal time to start laying the groundwork to make the most of your tax situation. Jackson Hewitt Tax Service(r) (NYSE: JTX) has identified some key actions you can take now to help maximize your tax benefits for the upcoming filing season:

Amp up your savings with a quick review of your 401(k) status. Maximize your 401(k) contributions and take advantage of employer matching, if it's available with your plan. Don't miss the opportunity to get tax benefits for 2005 on your contributions and the future retirement benefits gained by maximizing employer matching. "Taxpayers who choose not to participate in a 401(k) employer matching program may be leaving money on the table," says Mark Steber, Vice President of Tax Resources for Jackson Hewitt Tax Service. "Substantial tax benefits can be realized by saving the maximum amount for retirement through a 401(k) program."
Self Employed? Take time to evaluate your income and estimated taxes. If you have self-employment income, review year-to-date income and expenses and make sure estimated taxes are accurate and paid - to help avoid penalties later. Keep in mind that you must pay income tax as well as self-employment tax. "Self-employment tax is an additional tax that is commonly forgotten, and it tends to sneak up and give you a nasty surprise come April 15th," cautions Steber. "Information on self-employment tax and other commonly overlooked tax deductions can be found by visiting our website, www.jacksonhewitt.com."
Find out how new tax law changes may affect you.
Find out about the new Uniform Definition of a Qualifying Child, which may have a significant impact on your tax situation. For example, children who are not related to the taxpayer and live with both the taxpayer and a parent will generally not qualify as a dependent for the taxpayer. This new definition of a qualifying child may change the tax credits that were once available to you.
The new Energy and Transportation Act of 2005 provides tax incentives to businesses and individuals for energy conservation. You may receive significant tax credits for qualified fuel cell motor vehicles, advanced lean burn technology motor vehicles and qualified hybrid motor vehicles.
Save your receipts. If you've bought or plan to buy a boat or car, save your receipts! Recent changes in tax law now allow you to deduct sales tax. The sales tax on a major purchase can be added to the standard amounts published in the IRS sales tax tables as found in IRS Publication 600 and can be deducted on your tax return if you itemize.
Donate to charity. With summer coming to an end, now's a great time to clean out your garage or attic. Keep accurate records of your donations and/or hold onto the receipt provided to you by the charity. Not only is donating to charity a great way to help out those in need, you also reap an additional benefit as the fair market value of your donated items just might help you generate a nice tax deduction.
Use your extra time wisely. Did you know that this year April 15th falls on a Saturday? This means that you get two extra days to file your tax return. The deadline to file your return is by midnight on Monday, April 17, 2006. "Taking a tax course, such as those offered by Jackson Hewitt Tax Service, is a great way to learn about the latest tax laws," said Steber. "Courses are offered in many of our 5,400 locations across the country and are a great way to enrich your tax learning." Steber adds, "With just four months left in 2005, taking small steps now to monitor and improve your tax situation can help maximize your tax benefits and ultimately improve your bottom line come April 15th."
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 over 5,400 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.

For More Infromation Please contact:
Allison Jackson, Senior Manager,
Jackson Hewitt Tax Service Inc.
Phone: (973) 496-7536
Email: allison.jackson@jtax.com

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