Date: 2006-12-20
Congress and President Deliver Holiday-Time Treat for Taxpayers with
Dozens of Tax Benefits
Jackson Hewitt Tax Service® Encourages Tax Filers to Take Notice Before They Head Out To File Their 2006 Tax Return
PARSIPPANY, N.J., Dec. 20 /PRNewswire-FirstCall/ -- Today, President Bush signed into law the Tax Relief and Healthcare Act of 2006 (H.R. 6408). The new law extends and in some case modifies several important tax provisions that affect a great many taxpayers for the current year.
"Many of the laws that expired earlier this year and have now been reinstated will bring great benefit to taxpayers, including students, teachers, and those residing in states where they can choose to claim their state sales or income tax," said Mark Steber, Vice President Tax Resources, Jackson Hewitt Tax Service Inc.
Some of the newly extended provisions include:
- Tuition and Fees deductions for higher education expenses. Up to $4,000 may be deducted based on income level. The provision extends the benefit through tax year 2007.
- State and Local General Sales Taxes may be deducted in lieu of state and local income taxes. The provision extends the deduction for two years.
- Teachers who purchase classroom supplies and are not reimbursed may deduct up to $250 as an adjustment to income through tax year 2007.
There are dozens more, including tax benefits for both individuals and corporations. All of the extended provisions are retroactive to January 1, 2006.
"Because these laws expired before 2006, taxpayers will find that the IRS forms that have already been printed for the 2007 filing season will not include lines for any of these deductions or credits, although the IRS noted that supplemental literature for consumer awareness and proper filing procedures will be provided," said Steber. "These extended provisions provide significant bottom line tax benefits to tax filers. At Jackson Hewitt we've been aware of the possibility that these tax laws would be extended and had already taken steps to update our proprietary software, educate our preparers and ensure that our customers will have access to all tax credit and deduction information when having their tax return prepared at our offices."
To reach a Jackson Hewitt office, call 1-800-234-1040.
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with over 6,000 franchised and company-owned offices throughout the United States during the 2006 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.
SOURCE
Jackson Hewitt Tax Service Inc.
Allison Jackson
Senior Manager Communications
Melissa Connerton
CooperKatz & Company