Jackson Hewitt Provides Tips on Conducting a Mid-Year Tax Review

Summer is a great time for barbeques, picnics, visits to the beach and reviewing your tax situation! Jackson Hewitt Tax Service(R) notes that with the 2007 tax year just past the halfway mark, summer is the perfect time to conduct a mid-year tax review. Taxpayers may find that if they spend some time gathering receipts, reviewing their purchases, activities and even jobs they may have a better handle on some of the possible deductions and credits they may receive this coming tax season. Awareness of key tax information can help taxpayers in planning their activities and spending for the remainder of the year to better position them when it comes time to sitting down with a tax preparer to prepare and file their income tax return early next year."There are always things that taxpayers can do throughout the year to help them organize and make the most of purchases and/or investments. Taking steps like this can help them receive the largest refund amount they may be due or reduce the tax liability amount that they may owe," comments Mark Steber, Vice President of Tax Resources, Jackson Hewitt Tax Service Inc.

The following are some useful reminders of what can be done now:

-- Review your financial profile: Take a look at your finances and earnings over the past six months; this will allow you to also have a better sense of what you can expect for the remainder of the year. "Keep in mind that as you look forward you should also be evaluating your projected tax burden and reviewing ways to reduce any taxes you may owe," notes Steber.

-- Keep an eye on tax-saving strategies: Common activities such as purchasing a new car or making home improvements may lead to tax benefits. For example, the Energy Tax Act (now in its second year) offers tax incentives for energy-efficient car purchases or home repairs. If you need to replace a hot water heater or put in a new window, or if you're planning to buy a new car, making a "green" purchase and keeping the proper documentation can lead to savings on an annual tax return.

-- Evaluate what you are saving and how: Look for ways to participate in tax-free savings opportunities. Many companies offer a 401(k) program, which is a helpful way to save and reduce your taxable income. "A simple tax tip is to become involved with a 401(k) plan and to try to contribute the maximum amount," says Steber. "If you've been unable to participate thus far this year, see if contributing or even increasing

your contribution for the remainder of the year might work."

-- Predict the future - using your last pay stub: With less than six months to go in the year, it is possible to do a tax projection of where you may expect to be for the full tax year. It is also a good time to review the withholding amount that is listed on a paycheck and to make the proper adjustments. A Jackson Hewitt tax preparer can help put together an estimated projection at any time throughout the year, or can assist with amending a 2006 or other prior year returns.

-- Go see your doctor: If you've been putting off an elective medical or dental procedure, it may be in your interest to make an appointment. Qualifying medical expenses can often be deducted on a tax return, taking some of the pain out of those bills by reducing the amount of taxes owed. If you contribute to a Flexible Savings Account (FSA), remember that the money put into the account must be used by December 31, 2007; it cannot be used in 2008.

-- Commit to getting organized: As you go through the year, hang on to necessary receipts and paperwork that may help you when you file next year's tax return, such as proof of payment for home improvement services and items, medical expenses and items donated to charity. Storing any tax-related documentation in a shoe box, a folder or a drawer in one easy-to-find location means less scrambling next year.

-- Give back: When donating items to a favorite charity, it is now more important than ever to get the right kind of documentation if you wish to claim the donation on a tax return. According to Steber, "Starting with the 2007 tax year, the IRS requires a receipt, cancelled check, or bank record as proof of a charitable contribution, no matter what the value of the item is." Prior to this, only contributions of $250 or more (for a single item) required receipts, and while you may not need to provide documentation when submitting a return, it is needed in the event of an audit."

Information on these tips and other mid-year tax considerations can be accessed by going to http://www.jacksonhewitt.com/. To speak with a local tax preparer or find the Jackson Hewitt office nearest to you, call 1-800-234-1040.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. (NYSE: JTX) , with over 6,500 franchised and company-owned offices throughout the United States during the 2007 tax season, is an industry leader providing full service individual federal and state income tax 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 office nearest to you, call 1-800-234-1040

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