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.
>
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.
>