New to Filing Taxes? Jackson Hewitt(R) Shares Important Tips for First-Time Filers
PARSIPPANY, N.J., March 13 // PRNewswire-FirstCall // -- This year, a new group of taxpayers will file their tax returns for the first time rather than being claimed as a dependent by a parent. In addition to learning about the process of filing an annual tax return, these young people may be unsure if they should file on their own or choose a paid preparer. Jackson Hewitt Tax Service(R) offers some guidelines to help first-time filers understand why working with a tax preparer can mean more money in their pockets.
This Week's Tip: First-time filers can benefit from having their taxes professionally prepared. "Many first-time filers do not work with a tax preparer because they have little to itemize or deduct and assume it is easier to file themselves," explains Mark Steber, vice president of Tax Resources, Jackson Hewitt Tax Service Inc. "As a result, they tend to overlook relevant credits and deductions. Unfortunately, this means they may end up leaving money on the table."
Steber shares these tips for those filing for the first time in 2008:
- View this year's tax return as a template for future filings, listing deductions and credits that may be appropriate year after year. Working with a preparer the first time will ensure that all tax considerations are evaluated to maximize the taxpayer's refund.
- Tax preparers can walk consumers through the process of filing a tax return and can help them understand new laws and regulations. For example, the new Economic Stimulus rebate will apply to many first- time filers. A tax preparer can explain how the rebate works and what steps are necessary to take in order to be eligible.
- First-time filers who are students are often eligible for the tuition and fees deduction or for the Hope Credit or the Lifetime Learning Credit. Upon graduating, student loan interest payments may be deductible.
- Filers who take a new job and have to relocate can deduct qualified moving expenses not reimbursed by the new employer, such as moving household goods and personal items (including in-transit or foreign- move storage expenses), lodging costs when traveling to the new home, and car-related expenses like gas and oil or the standard mileage rate for moving of $.20 per mile. Be sure to save all receipts.
"Though their tax returns may be simple now, most first-time filers are on the road to a more complex tax return," notes Steber. "In the coming years, many of them will experience life changes such as the purchase of a house, marriage, or the birth of a child, all of which will affect the way they file their returns. Working with a preparer now can help taxpayers understand how these changes will impact their taxes later."
For more information and tips and to find a nearby office, consult the Jackson Hewitt Web site at http://www.jacksonhewitt.com.
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,800 franchised and company-owned offices throughout the United States during the 2008 tax season, is an industry leader providing full service individual federal and state income tax return 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(R) office nearest to you, call (800) 234-1040.
SOURCE Jackson Hewitt Tax Service Inc.