Jackson Hewitt Reminds First-Time Homeowners That Clock Is Ticking on New Home Credit

PARSIPPANY, N.J., Nov. 2 /PRNewswire-FirstCall/ -- With less than 30 days to go to qualify for the first-time homebuyers' credit, those who are considering purchasing a first home may be feeling the pressure to make an important decision -- and to act quickly. Over 1.4 million* taxpayers have already taken advantage of this significant tax incentive, and Jackson Hewitt Tax Service® is reminding qualified first-time homebuyers purchasing a principal residence that they must close on that residence by midnight on November 30, 2009 in order to qualify for the credit of up to $8,000.

"Any first-time homebuyer in the process of buying a new home needs to push to get the closing scheduled and done in the next four weeks. Otherwise they'll miss the chance to take advantage of what is clearly a substantial refundable credit," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service.

Steber highlighted several things first-time homebuyers racing to meet the midnight deadline of November 30 should keep in mind:

• The Internal Revenue Service considers the purchase date to be the date when the home closing takes place and when the title to the property is transferred to the new owner. "This is an absolutely critical factor to consider, given the length of time it typically takes to close and the fast-approaching deadline," said Steber.
  

• To be considered a first-time homebuyer, an individual must not have owned a principal residence during the three-year period prior to the purchase. "This means if you are married and both or one of you purchase a home, neither one of you can have owned a principal residence in the previous three years to qualify for the credit," he cautioned.
  

• This credit allows single taxpayers, or those who are married and file jointly, to claim 10 percent of the purchase price of their home, up to $8,000. Those who are married and file separately can claim up to $4,000 on each return.
  

• Those who filed a 2008 income tax return before purchasing a home within the allotted timeframe can claim the credit by amending their 2008 return, or by waiting to claim the credit when filing a 2009 tax return.
  

• First-time homebuyers should also be mindful of the income limits that define eligibility. Single taxpayers who exceed $95,000 in annual income are not eligible, nor are those married taxpayers who file jointly with an annual income over $170,000.
  

• The credit for homes purchased on or after January 1, 2009 and before November 30, 2009 does not have to be repaid unless the home is then sold within 36 months of the closing date.
  

* http://www.irs.gov/newsroom/article/0,,id=204671,00.html

More information about the first-time homebuyer credit and other home-related tax considerations 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.

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.