I checked the IRS site and this is correct

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dun

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Subject: Fw: Special One time tax credit on 2006 tax return



When it comes time to prepare and file your 2006 tax
>return, make sure you don't overlook the "federal excise tax refund credit."
>You claim the credit on line 71 of your form 1040. A similar line will be
>available if you file the short form 1040A. If you have family or friends
>who no longer file a tax return AND they have their own land phone in their
>home and have been paying a phone bill for years, make sure they know about
>this form 1040EZ-T.
>
> What is this all about? Well the federal excise tax
>has been charge to you on your phone bill for years. It is an old tax that
>was assessed on your toll calls based on how far the call was being made and
>how much time you talked on that call. When phone companies began to offer
>flat fee phone service, challenges to the excise tax ended up in federal
>courts in several districts of the country. The challenges pointed out that
>flat fee/rate phone service had nothing to do with the distance and the
>length of the phone call. Therefore, the excise tax should/could not be
>assessed.
>
> The IRS has now conceded this argument. Phone
>companies have been given notice to stop assessing the federal excise tax as
>of Aug 30, 2006. You will most likely see the tax on your September cutoff
>statement, but it should NOT be on your October bill.
>
> But the challengers of the old law also demanded
>restitution. So the IRS has announced that a one time credit will be
>available when you and I file our 2006 tax return as I explained above.
>However, the IRS also established limits on how BIG a credit you can get
>Here's how it works.
>
> If you file your return as a single person with just
>you as a dependent, you get to claim a $30 credit on line 71 of your 1040.
>
> If you file with a child or a parent as your
>dependent, you claim $40.
>
> If you file your return as a married couple with no
>children ,you claim $40.
>
> If you file as married with children, you claim $50
>if one child, $60 if two children.
>
> In all cases, the most you get to claim is $60 -
>UNLESS you have all your phone bills starting AFTER Feb 28, 2003 through
>July 31, 2006 (do not use any bills starting Aug 1, 2006.), then you can add
>up the ACTUAL TAX AS IT APPEARS ON YOUR BILLS AND CLAIM THAT FOR A CREDIT.
>
> Now if you have your actual phone bills and come up
>with an ACTUAL TAX AMOUNT, you cannot use line 71 on your tax return. You
>have to complete a special form number 8913 and attach it to your tax
>return.
>
> Individuals using the special from 1040EZ-T will
>have to attach this form 8913 also.
>
> One final point - this credit is a refundable
>credit. That means you get this money, no matter how your tax return works
>out. If you would end up owing the IRS a balance, the refund will reduce
>that balance you owe. If you end up getting a refund, the credit will be
>added and you get a bigger refund by that $30 to $60, depending on how many
>dependents are on your return.
>
 
Another note - If you are claiming this credit for other than an individual return, you can only claim actual... that means you have to go thru every telephone, internet, etc bill for the stated time period to get your refund.

You can alternatively go the actual expense route for your individual return as well.

Michele
 
The part about this story that really gets me is the excise tax was first
applied to phone bills as a means to help pay for the cost of the
Spanish-American War (April - August 1898)!

This from my nephew, I'm not smart enough to know this sort of stuff
 
dun":pc96n2n1 said:
The part about this story that really gets me is the excise tax was first
applied to phone bills as a means to help pay for the cost of the
Spanish-American War (April - August 1898)!

This from my nephew, I'm not smart enough to know this sort of stuff
Expensive war :D
 
We have three lines coming in. (two computers and the phoone) I wonder if we get to claim on all three of them?Z
 
When are they going to fix the tazes on cell phones?

This really and seriously riles me up! :

Our cell phone bills include city sales tax. We don't live in the city. There were all these "coded" taxes and I had the daring question as to what the heck they were. They told me it was city tax. I asked why in the heck I was being charged that. They told me my address was "Granbury" and I said yes, since all the streets changed and 911 came in with all of these addresses, my address changed from "Route 1, Box....."

The cell phone company says they have no way of knowing where I live etc etc and they won't quit charging me city tax.

Got to looking into this and everyone now does it. The cities must be getting rich off of sales taxes that aren't truly theirs.
 
backhoeboogie":2adtagch said:
When are they going to fix the tazes on cell phones?

This really and seriously riles me up! :

Our cell phone bills include city sales tax. We don't live in the city. There were all these "coded" taxes and I had the daring question as to what the heck they were. They told me it was city tax. I asked why in the heck I was being charged that. They told me my address was "Granbury" and I said yes, since all the streets changed and 911 came in with all of these addresses, my address changed from "Route 1, Box....."

The cell phone company says they have no way of knowing where I live etc etc and they won't quit charging me city tax.

Got to looking into this and everyone now does it. The cities must be getting rich off of sales taxes that aren't truly theirs.


I get charged an Arkansas tax on mine and I live in Oklahoma :mad:

Chris
 
Bluestem":99afquh0 said:
dun":99afquh0 said:
The part about this story that really gets me is the excise tax was first
applied to phone bills as a means to help pay for the cost of the
Spanish-American War (April - August 1898)!

This from my nephew, I'm not smart enough to know this sort of stuff
Expensive war :D

They all are. Though I don't know if they are still running today but was going strong in the mid 80's: The Helium Reserve Program employed some 15 employees at a cost of 21 million per year to insure that we had ample helium for our airships in WW1. :roll:
 
dun":15f0hrsn said:
>UNLESS you have all your phone bills starting AFTER Feb 28, 2003 through
>July 31, 2006 (do not use any bills starting Aug 1, 2006.),

I just happen to have them, as far back as 1998.

Thanks for the tip dun.

Katherine
 
Bluestem":100vuc1o said:
dun":100vuc1o said:
The part about this story that really gets me is the excise tax was first
applied to phone bills as a means to help pay for the cost of the
Spanish-American War (April - August 1898)!

This from my nephew, I'm not smart enough to know this sort of stuff
Expensive war :D

You know the gov't never met a tax it didn't like.
 

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