New Legislation Includes Tax Provisions Impacting More Than 26 Million Taxpayers This Year
PARSIPPANY, N.J., Oct. 10 // PRNewswire-FirstCall // -- The recently passed Emergency Economic Stabilization Act of 2008 legislation includes several tax provisions that will impact up to 26 million taxpayers* that now fall under the Alternative Minimum Tax (AMT) level. Jackson Hewitt wants taxpayers to understand how they could possibly be affected by these new provisions which were passed on October 3, 2008.
The AMT, originally created in 1969, is an alternative tax calculated by using a separate set of rules that disallow many deductions and exemptions used in computing traditional tax liability, including state income tax or second mortgages. It was originally intended to target high-income households that typically qualified for numerous tax benefits. These benefits allowed them to owe substantially less money under the tax code at that time.
"The Alternative Minimum Tax patch for 2008 is extremely important because the increase in the AMT exemption amounts will ensure that millions of middle class taxpayers are safe from being subjected to the additional tax. The AMT was originally proposed to impact higher income wage earners, but over the years has started to capture the middle class due to inflation," said Mark Steber, vice president of Tax Resources at Jackson Hewitt Tax Service. "Many of those affected by the new legislation outlined below will be eager to have their tax returns completed early in the season and eFile in order to receive their tax refund quickly. In addition to the new AMT exemption amounts, there are many other tax benefits in the legislation. There's no doubt the extension measures will keep more money in taxpayers' pockets this year."
Jackson Hewitt wants those potentially affected by the AMT patch for the 2008 tax year to understand the following when filing their tax returns in 2009:
The legislation also includes a change to the Additional Child Tax Credit and the extension of existing deductions for the 2008 tax year including:
Additional elements of the new tax provision include incentives for going "green." Some considerations include:
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,800 franchised and company-owned offices throughout the United States during the 2008 tax season, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. The Company is based in Parsippany, New Jersey. More information may be obtained at http://www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service(R) office nearest to you, call 1-800-234-1040.
*According to the IRS Oversight Board 9/17/08
SOURCE Jackson Hewitt Tax Service Inc