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,
"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."
Information on the newly extended provisions can be found at our
website - www.jacksonhewitt.com. To reach a Jackson Hewitt office, contact
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.
Allison Jackson Melissa Connerton
Senior Manager, Communications CooperKatz & Company
Jackson Hewitt Tax Service Inc. 212-455-8001
SOURCE Jackson Hewitt Tax Service Inc.