When you enroll in Jackson Hewitt’s Tax School, our experienced instructors will provide education and training for beginners, as well as ongoing tax education and training to meet IRS requirements for experienced tax professionals. And, learning to prepare taxes is a skill that could even lead to extra income at tax time!*

Enrollment is starting now and class sizes are limited—so don’t delay. Visit JacksonHewitt.com to find out more or to find the Tax School location nearest you!

*Enrollment in, or completion of, a course is neither an offer nor a guarantee of employment. Additional training, experience or skills may be required to be employed as a tax preparer.

Important Tax Information for Small Business Owners!

As a small business owner, there are some important tax issues that could impact your 2012 return: 

• New rules for online sales! Beginning in 2012, online businesses that accept credit card payments will receive a Form 1099-K reporting the payments received from payment settlement entities (PSEs), such as PayPal. Deductible charges such as handling fees, sales taxes collected and cash-back amounts will be included in the Gross amounts reported on the 1099-K and must be accounted for and claimed as either an adjustment (sales taxes paid) or a business expenses (per payment charges) on the business return.

• The IRS allows a business to have a loss only two years out of any five consecutive years. If a business can show the IRS a five-year business plan and can show that local or national economics contributed to more than the two allowed losses, the IRS may allow the extra loss. If a business has more than the allowed two years of losses, but is making progress towards making a profit, has a solid business plan and it is common in the type of industry to take more than two years to make a profit, the IRS may allow the business loss.

• The IRS reclassifies a business as a hobby when they determine the business is not run as a potentially successful business. A hobby is not subject to self-employment taxes. The IRS does not allow a taxpayer to claim a hobby loss and requires the income to be reported as “other income” on Form 1040. Hobby expenses are allowed up to the total income only and are reported on Schedule A, Itemized Deductions as an “other miscellaneous deduction.”

• Keep all receipts for purchased items, contracts for purchased items, bills, log books and other back-up for all income, expenses, and taxes on your business return for at least three years past filing the return. Keep payroll information for four years and employee information for four years after the employee has left your employ.
• The IRS requires detailed record keeping on mileage for a vehicle, including total miles for the year and miles driven daily for business. Acceptable documentation includes: daily mileage log and calendar/daytimer entries for business mileage.

When it comes to your small business...don’t take chances. Let the Jackson Hewitt tax pros help you get every deduction and credit your entitled to get. Call your neighborhood office to speak with a local tax pro today!

Will You Be Ready if Disaster Strikes?

Floods, hurricanes, wildfires, tornadoes...are you ready for the worst that nature can dish out? Safeguard yourself and your business against natural disasters by taking a few simple steps now.

Create a Set of Electronic Backup Records 

Always keep a set of backup records in a safe place, stored away from the original set.

If you’re a Jackson Hewitt^® client, you can sign up for MyTaxManager—a FREE online tool which lets you safely upload and store all of your important documents in one easy-to-access place.

Document Your Valuables 

Try to photograph or videotape the contents of your home, particularly when pertaining to high-value items. Jackson Hewitt has a Home Inventory Guide on our website, which can help you compile a room-by-room list of your belongings.

Having photographic records can help prove the market value of your items for insurance and casualty loss claims. Store photos with a friend or family member who lives outside the area of your home business.

Update Your Emergency Plans 

Annually review your emergency plans to make sure that your personal or business situation still matches your existing plan. Your emergency plan may need to evolve over time to suit certain changes.

If your business hires new employees or changes functions, plans should be updated accordingly and employees should be informed of the changes made.

Check on Fiduciary Bonds 

Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.

Want to find out more? Just visit www.JacksonHewitt.com.

TaxTips 

If you use a vacation home as a residence and rent it for fewer than 15 days per year, you do not have to report any of the rental income. Schedule A, Itemized Deductions, may be used to report regularly deductible personal expenses, such as qualified mortgage interest, property taxes, and casualty losses.

Now that tax season is over, it is time to start preparing for next year. These simple steps can help you receive a refund next year and you reduce your taxes.

• Predict the future – using your last pay stub:  It is possible to do a tax projection of your taxes for the full year.  Review the withholding amount that is listed on your  paycheck stub and make any necessary 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 prior year return.

• 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 offers tax incentives for energy-efficient car purchases or home repairs.  If you need to replace a hot water heater, install a new a/c unit, re-insulate your home or put in new windows, or if you’re planning to buy a new car, making a “green” purchase and keeping the proper documentation can lead to savings on your 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.  The maximum contribution amount is $16,500.   “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.”  If you turn 50 this year, or are already 50 or older, you can increase your contribution by an additional $5,500.

Many Jackson Hewitt offices are open year round to help you with your tax questions and needs. 

Tax season is over and it is time for spring tax cleaning!

Now is the time to purge your old tax records.  The IRS only requires you to keep your records for three years from the due date of your tax return or the date your filed your tax return, whichever is later.  In addition, we at Jackson Hewitt recommend you keep any tax return that could affect a future tax return, until the final return containing the information is filed.  This includes returns that have a sale of part of stock or mutual funds owned, businesses with an inventory and depreciation, and rental property to name a few items.

Contact the Jackson Hewitt office closest to you for any concerns, questions, or to file a tax return.

Each year a large number of taxpayers wait until the final days to file; but we’re here to help! Whether you are filing online or with a tax preparer, keeping just a few last-minute guidelines top of mind will help you focus on exactly what to do, avoid further delay, and ensure that the last-minute rush does not negatively impact their tax filing process and financial bottom-line.

Answers to some key questions from last-minute filers:

• How can I be sure to get my biggest refund possible? From benefits relating to life changes experienced in 2010 to new and extended tax laws, knowing which credits and deductions you can claim can help maximize a tax refund or reduce a tax liability owed. With so many tax law changes every year, working with a knowledgeable tax preparer can help to ensure you claim what you qualify for and avoid leaving money on the table.

• What is my fastest option for filing? IRS e-file is not only faster than mailing a tax return; it’s also more accurate and includes a confirmation of receipt, so taxpayers know their returns have been received before the deadline. When you e-file and use direct deposit into a bank account, you can receive your refund in as little as 8 to 15 days.  Jackson Hewitt provides FREE electronic filing with paid tax preparation.

• What if I owe, but can’t afford to pay? If you are unable to pay the full amount of taxes you owe, it is important to pay as much as possible to avoid a high assessment of penalties and interest. Talk to your tax preparer about the various payment options including: the IRS Installment Agreement, payment by credit card, and scheduled direct debit from your checking or savings account. 

• What is an extension, and how do I know if I need one? An extension of your federal tax return is a request to file your tax return by October 17 and still be considered timely filed. Pay as much as possible, but know that to avoid certain penalties, you must pay 90 percent or more of your estimated tax liability on or before April 18. 

This late in the tax season you definitely don’t want to rush and miss tax benefits that you deserve and are entitled to. Some key ways to make sure you don’t leave anything out is to review your year for life changes (marriage, divorce, etc.), use a checklist of overlooked credits or deductions and lastly, get help from a knowledgeable tax professional.

If you went back to school last your, you may be eligible for the $2,500 American Opportunity Credit or the $2,000 Lifetime Learning Credit.

If you purchased an eco-friendly vehicle last year, you may be eligible for the Alternative Motor Vehicle Credit.

Check out Jackson Hewitt's MyTaxManager for a list of the most commonly overlooked deductions and credits.  We also provide a checklist to help you gather the information needed to make filing your tax return easier.

Switch to Jackson Hewitt® and pay $50 less than you paid someone else
to do your taxes last year.*

Don’t trust your taxes to just anyone. Give Jackson Hewitt® a try! At Jackson Hewitt, taxes are all we do. We’ll take the time to ask you all the right questions, so you’ll get every deduction and credit you deserve and the biggest refund possible.

And, with our $50 Dare to Compare you’ll know exactly what you’ll pay for tax prep this year—$50 less than you paid someone last year!

If you have questions, or wish to find the participating location nearest you, call 1-800-234-1040 or visit us online at JacksonHewitt.com.