Jackson Hewitt® Reminds Taxpayers That Big Life Changes May Equal Big Tax Savings
Common Life Changes Can Drive Deductions and Credits
PARSIPPANY, N.J., Sept. 24, 2012 /PRNewswire/ -- 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
[email protected]
Melissa Connerton
CooperKatz & Company
(917) 595-3039
[email protected]
SOURCE Jackson Hewitt Tax Service Inc.
Share this article