Clocks 'Fall Forward' for Homebuyers, as President Obama Signs Off on Extension of First-Time Homebuyers Tax Credit

November 6, 2009 11:52 AM EST

PARSIPPANY, N.J., Nov. 6 /PRNewswire-FirstCall/ -- Following months of speculation and Congressional debate, President Obama today signed the "Worker, Homeownership and Business Assistance Act of 2009" into law, extending the popular First-Time Homebuyer tax credit originally scheduled to expire on December 1, 2009. This new legislation offers those in the process of buying a home more time to take advantage of this significant tax benefit, allowing them to claim the credit if they close on a first-time home purchase by midnight on June 30, 2010.

According to the IRS, the credit has provided a tax benefit to more than 1.4 million* taxpayers as of September 2009. The credit enables those buying a primary residence for the first time to claim 10 percent of the purchase price of their home, up to $8,000 for single taxpayers or married taxpayers filing jointly.

"This is very good news for consumers looking to purchase their first home, particularly those who are still weeks away from closing on their purchase and would likely have just missed the original deadline," said Mark Steber, chief tax officer, Jackson Hewitt. "Nearly a million and a half people have benefited from this credit, so with an additional seven months to the closing timeframe, so many more will now have the chance to benefit as well."

Earlier this month, Jackson Hewitt reminded taxpayers of the guidelines for eligibility. Details are available at http://jacksonhewitt.com/content.aspx?id=97299.

The new provisions include the following changes:

    --  Taxpayers must purchase their home, or be locked into a contract to
        close, before midnight on April 30, 2010.  The closing must occur before
        midnight on June 30, 2010.
    --  The credit is allowed in full for those with incomes up to $125,000
        ($225,000 if married filing joint).  The credit is reduced for taxpayers
        with an income between $125,000 and $145,000 ($225,000 and $245,000 if
        married filing joint) and is not available for taxpayers with an income
        higher than $145,000 ($245,000 if married filing joint).

    --  Taxpayers (and their spouses) who have lived in their home for five
        consecutive years out of the eight years preceding closing on a new
        house may qualify for a reduced credit ($6,500 or $3,250 for those who
        file separately).

More information about the extended First-Time Homebuyer credit, other home-related tax considerations and additional provisions cited in the recent act is available online at www.jacksonhewitt.com.

To speak with a local tax preparer or find the Jackson Hewitt office nearest to you, call 1-800-234-1040.

* http://www.irs.gov/newsroom/article/0,,id=213375,00.html

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. (NYSE: JTX), with approximately 6,600 franchised and company-owned offices throughout the United States during the 2009 tax season, 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.

    Contact:
    Jorge Lavina                          Melissa Connerton
    CooperKatz & Company                  CooperKatz & Company
    917-595-3047                          917-595-3039
    jlavina@cooperkatz.com                mconnerton@cooperkatz.com

SOURCE Jackson Hewitt Tax Service Inc.

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