JERSEY CITY, NJ--(Marketwired - Dec 21, 2016) - With discussions of tax reform from President-elect Trump, Jackson Hewitt Tax Service® wants to prepare taxpayers for possible changes next year and suggest actions that help them get the maximum refund they deserve this tax season.
"President-elect Trump has said that he plans to reduce taxes and simplify the tax code," said David Prokupek, CEO of Jackson Hewitt. "As tax industry experts, we can help taxpayers understand the changes, and what they mean to their wallets."
Jackson Hewitt® offers important tips taxpayers should consider as this year comes to a close:
Accelerate deductions to take them this year, when tax rates are likely to be higher.
- Book education expenses now. For example, pay any winter semester tuition and fees before Jan. 1, 2016.
- Consider making bigger charitable donations or contributions before Dec. 31, 2016.
- Sell any stocks with a loss, so you can deduct those losses.
Defer income to 2017, when rates could be lower.
- Push bonuses into 2017, if possible.
- Defer property or stock sales that create gains or capital gains until next year.
- Consider waiting until 2017, when rates may be lower, for Roth IRA conversions.
Be Ready for Effects of New Tax Laws that passed in Dec. 2015.
- The PATH (Protect Americans from Tax Hikes) Act gives the IRS more time to review returns with the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).
- The IRS noted that taxpayers claiming those credits may not receive their refunds until the week of Feb. 27, 2017.
Remember time sensitive spending or retirement accounts.
- Use Flexible Spending account balances for medical and child care by Dec. 31, 2016.
- If you are over 70 years of age and have a traditional IRA or conventional pension plan, be sure you have taken your required annual distribution to avoid any penalty.
- If you are over 50, consider a "catch up" contribution into your retirement account.
Finally, get professional assistance if you need it. This is one of the biggest financial transactions of the year, and you don't want to leave money on the table. Visit www.JacksonHewitt.com/OfficeLocator to find an office near you.
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. is an innovator in the tax industry, with a mission of offering its hard-working clients access to simple, low-cost solutions to manage their taxes and tax refunds. Jackson Hewitt is devoted to helping clients get ahead with Maximum Refund and 100% Accuracy Guarantees. With approximately 6,000 franchised and company-owned locations, including 3,000 in Walmart stores and online and mobile tax solutions Jackson Hewitt makes it convenient for clients to file their taxes. For more information about products, services and offers, or to locate a Jackson Hewitt office, visit www.JacksonHewitt.com or call 1 (800) 234-1040.