Jackson Hewitt's Weekly 'Tax Time Tip': Did Your Family Grow in 2005? Tax Filing Hints for New Moms and Dads

PARSIPPANY, N.J., March 14 /PRNewswire-FirstCall/ -- Jackson Hewitt Tax Service(R) (NYSE:JTX) , the nation's second largest tax preparation service, continues its weekly series, "Jackson Hewitt Tax Time Tips," with timely tax filing tips for families that celebrated the arrival of a new child in 2005.

This Week's Tip: The birth or adoption of a child last year triggers several important tax-reducing opportunities in filing a family's 2005 tax return, according to Mark Steber, Vice President, Tax Resources for Jackson Hewitt Tax Service Inc.:

-- Several deductions for expenses in 2005 before the baby arrived may be
available. Some medical expenses incurred during pregnancy and
delivery can be taken as itemized deductions, if these costs were not
covered by insurance. For example, taxpayers can often deduct expenses
for the mother's prenatal doctor visits, labor and delivery room costs
and even mileage to the hospital.

-- Expenses during 2005 that occurred after the baby arrived may also
qualify as deductions, for example, hospital nursery fees, well-baby
check-ups and immunizations.

-- Families that adopted a child in 2005 may be able to obtain a tax
credit of up to $10,630 for qualifying expenses paid during the
adoption process. Deductible expenses include adoption fees to the
organization or group sponsoring the adoption, court costs, attorney
fees, domestic and international travel costs (including meals and
lodging while away from home) and other expenses related to adopting a
foreign child. If the child has special needs, the credit for which
the adoptive parent is eligible may be higher.

-- Taxpayers with children should also be aware of a significant change
affecting 2005 returns: the new definition of a child for tax purposes.
Now, a "qualifying child" must meet four requirements: relationship,
residency, support and age. This definition affects all of the
child-related tax benefits.

-- Taxpayers with qualifying children may be able to claim a tax return
credit of up to $1,000 for each child under the age of 17.

"To ensure that tax-paying parents meet the 2005 tax code's qualifications and receive all of the credits and deductions to which they're entitled, they should visit a professional tax preparer for more information and advice," counsels Steber.

Contact: Allison Jackson, Jackson Hewitt Tax Service Inc., 973-630-0681,
allison.jackson@jtax.com; Melissa Connerton, CooperKatz &
Company, 212-455-8001, mconnerton@cooperkatz.com

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 6,000 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/. To locate the Jackson Hewitt office nearest to you, please call 1-800-234-1040.