Taxpayers Running Out of Time to Collect Over $1 Billion in Unclaimed Tax Refunds
Jackson Hewitt(R) Reminds Taxpayers That Three-Year Window to Claim 2006 Refunds Ends This April 15; Expired Tax Benefits Still Available
PARSIPPANY, N.J., March 4 /PRNewswire-FirstCall/ -- Taxpayers who did not file a 2006 tax return are at risk of forfeiting more than $1.3 billion* in possible refund dollars, according to the Internal Revenue Service. Jackson Hewitt Tax Service® notes that this year's tax filing deadline of April 15 is doubly significant for the nearly 1.4 million* people who did not file in 2006, given that their three-year window to claim a potential refund is quickly closing.
"If you did not file a 2006 tax return, you are leaving an average of over $600 on the table, according to IRS statistics," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. "While several important tax credits and deductions available in 2006 have since expired, taxpayers who file a 2006 return now are still allowed to claim them. So if you fall into this category, you need to act before that three-year window closes for good next month."
Steber shared examples of 2006 tax provisions that are still available to be claimed, provided the appropriate return is filed by April 15, 2010:
- The Telephone Excise Tax – A refundable rebate credit available for 2006 for any person or business that paid this tax for long distance calls made between February 28, 2003 and August 1, 2006. A standard refund amount of $30 to $60 is available, or taxpayers can base their refund request on the actual amount of tax paid.
- Seniors and charitable donations from IRA's – 2006 marked the first year that taxpayers age 70-1/2 and older could make a tax-free distribution (up to $100,000) from an individual retirement account (IRA) to a charitable organization. This distribution was also applied to the minimum required distribution for the year.
- Residential energy credits – Another first-time provision, the Energy Policy Act of 2005 let homeowners who made certain types of home improvements claim beneficial credits on their 2006 tax returns. Tax credits varied based on the type of improvements made, up to a limit of $500 for tax years 2006 and 2007.
- Alternative motor vehicle credits – Taxpayers who purchased a qualified hybrid or other alternative fuel vehicle in 2006 can claim a credit of up to $3,400 on a 2006 tax return, provided that the taxpayer was the car's original owner.
- Hurricane Katrina-related considerations – Legislation created to help those impacted by Hurricane Katrina eliminated the requirement for qualified disaster victims to pay 10 percent additional tax for taking early distributions from their retirement accounts. The provision also gave taxpayers who used their personal residences to house individuals displaced by Hurricane Katrina the ability to receive an additional personal exemption of $500 (maximum of $2,000 deduction) for each displaced person.
"It's important to note that this list of potential tax benefits is not only for those who did not file in 2006," said Steber. "Consumers who feel they qualified for deductions or credits that were not claimed on their original return can file an amended 2006 tax return before April 15, 2010. Be sure to speak with a knowledgeable tax preparer to see if this may be the right approach for you."
* Source: Internal Revenue Service
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with more than 6,000 franchised and company-owned offices throughout the United States, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey. More information may be obtained at www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service® office nearest to you, call 1-800-234-1040.
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Melissa Connerton |
Jorge Lavina |
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CooperKatz & Company |
CooperKatz & Company |
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917-595-3039 |
917-595-3047 |
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SOURCE Jackson Hewitt Tax Service Inc.
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