Peak Period Kicks Off for Claiming Employee Business Expenses

PARSIPPANY, N.J., March 20, 2009 /PRNewswire-FirstCall via COMTEX/ -- JTX | Quote | Chart | News | PowerRating -- This week marked the beginning of a peak period for taxpayers who claim a major tax deduction: employee business expenses. Nearly half of all taxpayers who claim such deductions file their tax returns between mid-March and April 15. According to figures from the Internal Revenue Service, more than 48 percent of Forms 2106 (Employee Business Expenses) were filed during this period last year.*

Jackson Hewitt Tax Service(R) is recognizing this peak filing period by highlighting the many deductions and credits related to specific types of occupations.

"Although there is a significant influx of tax return filers right after they receive W-2s at the end of January, the last month of the filing season is also another busy time for tax filers with returns that include deductions for business expenses, as well as other itemized, occupation related, and other deductions," said Mark Steber, vice president of tax resources at Jackson Hewitt(R).

Steber notes that it may simply take taxpayers longer to gather receipts, travel logs and other documentation they need for filing employee business expenses. Another reason people wait is the complexity of figuring out which job-related expenses are deductible. That's why Jackson Hewitt is trying to make it easier.

"We want to make sure people are claiming every credit and deduction available to them because of their line of work," Steber added. "Our Deductions@Work(R) program is a great tool to ensure nothing is missed."

Taxpayers who file their returns with Jackson Hewitt receive an assessment of potential deductions and credits specifically related to their occupation, based on the company's Deductions@Work program, a proprietary tool that reviews approximately 50 of the most common professions in the U.S. and highlights all of the credits and deductions available for each.

Many workers get $30 discount on tax preparation service

Jackson Hewitt is continuing to offer a $30 discount off tax preparation to taxpayers in certain occupations until April 12. Different occupations will be eligible for the discount each week. Emergency medical technicians and healthcare professionals can receive the discount this week.

Taxpayers in the following occupations and employment situations also will receive the discount:

    --  Teachers and government workers             - March 23 thru March 29
    --  Military personnel, firefighters, & police  - March 30 thru April 5
    --  Professional drivers and retirees           - April 6 thru April 12

Work-related deductions and credits

A sample of deductions and credits related to specific occupations and to retirees include:

Drivers

    --  Drivers may deduct vehicle expenses, including parking fees and tolls,
        maintenance and repairs, fuel, oil, registration fees, washing the
        truck, insurance, tires and depreciation if the taxpayer owns the
        vehicle.
    --  Travel expenses may be deducted if incurred while traveling away from
        home, including lodging, meals and showers.
    --  Log books, cargo insurance, expenses for damaged cargo, and the cost of
        toll collections and weigh station fast pass systems are all deductible.

Firefighters and Police Officers

    --  Union or professional organization dues and subscriptions to
        publications and professional journals related to their line of work
    --  Uniform expenses and safety equipment, including body armor
    --  Travel to a temporary duty station if that station is outside a
        taxpayer's normal or "home" station
    --  Premiums paid for liability insurance or errors and omissions insurance

Government Workers

    --  Government workers, including secretaries, administrative assistants,
        and accounting or data entry clerks, can deduct state or local
        government regulatory fees, licenses or flat-rate occupational taxes,
        provided these fees are not reimbursable or paid for initial
        certification or licensing.
    --  Government workers may be able to deduct any expenses paid to improve or
        learn new skills that will allow them to advance in their job.

Members of the U.S. Armed Services

    --  Members of the military may be able to use nontaxable combat pay to
        recalculate certain credits, such as the Earned Income Tax Credit and
        the Additional Child Tax Credit. Including combat pay as earned income
        can help some military taxpayers qualify for a number of credits that
        can reduce the amount of taxes owed or increase a refund.
    --  Members of the National Guard or Reserve may qualify for an
        above-the-line deduction for travel expenses when reporting for reserve
        training or duty more than 100 miles from their home.

Retirees

    --  Retirees who do volunteer work may be able to deduct their un-reimbursed
        expenses related to their services if they are provided to a qualified
        organization.  Taxpayers may deduct the actual cost of their gas or the
        standard mileage rate for charity (14 cents per mile) if they use their
        personal vehicle while performing volunteer services.

Teachers

    --  Teachers, instructors, counselors, principals or aides in a school
        (kindergarten through grade 12) who work at least 900 hours during a
        school year can deduct up to $250 for out-of-pocket classroom expenses
        such as books or computer equipment. Supplies used for home schooling or
        non-athletic supplies used for courses in health or physical education
        do not qualify. This deduction directly reduces a taxpayer's income
        and the individual does not need to itemize deductions to obtain this
        benefit.
    --  Educators may be eligible to claim deductions for tuition incurred in
        pursuing graduate or other additional education, especially if an
        education program is required as part of a state school board's
        certification renewal process.
    --  There are a variety of other deductions that may apply to educators (if
        unreimbursed), including:
        --  expenses incurred while lecturing, writing or publishing for which
            the educator receives no additional compensation other than regular
            salary,
        --  union dues or professional dues,
        --  clothing required for work that is not appropriate for everyday wear
            (such as an art teacher's smock or a dance teacher's jazz
            shoes), and
        --  car expenses incurred when taking students on a school-sponsored
            field trip or the cost of materials used for a class play or party.

"These are just a few of the many credits and deductions available to specific groups of workers," said Steber. "To make sure they are maximizing their tax returns, taxpayers should consult a professional preparer who is knowledgeable about occupation-based tax considerations and understands their specific employment situations."

*Internal Revenue Service, Taxpayer Usage Study 2007, http://www.irs.gov/taxstats/article/0,,id=184856,00.html

For more information on occupation-focused deduction considerations, visit: http://www.jacksonhewitt.com/DeductionsWork/. To locate a Jackson Hewitt Tax Service location near you, visit www.jacksonhewitt.com and click on the Office Locator link at the top of the homepage. For more information on overlooked credits and deductions, visit: http://www.jacksonhewitt.com/DeductionsCredits/.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,600 franchised and company-owned offices throughout the United States during the 2009 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 www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service(R) office nearest to you, call 1-800-234-1040.

    Contact:

    Sara Garibaldi
    Ketchum (Public Relations)
    646-935-4097
    Sara.garibaldi@ketchum.com

    Ally Gellert
    Ketchum (Public Relations)
    646-935-3924
    Ally.gellert@ketchum.com

SOURCE Jackson Hewitt Tax Service

http://www.jacksonhewitt.com

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