|
Written by Chuck Bowen
|
|
Monday, 18 June 2007 10:14 |
 Usually I'm not a fan of increasing your tax refund (after all, they got YOUR money early), but this time it's different. This year, when you file your '06 taxes, you'll be able to claim a $30-60 credit due to the government repealing an excise tax phone companies were charging for long distance service. For example, a family of four can claim a $60 credit while a single tax filer can claim $30 Alternatively, you may go through 41 months of old phone bills from 3/03 to 9/06 and add up the actual tax paid. Hmmm ... I think I'll take the $50 for the three of us.
Businesses and non-profits may not claim a standard amount. The best way for them to calculate the credit is to look at their Aug '06 phone bill, calculate the tax as a percentage of the long distance charges and apply it to phone expenses during the period to determine the credit amount.
IMPORTANT: You'll need to enter the credit amount on the proper line of your return to receive the credit. You can go to www.irs.gov and click on 'Telephone Excise Tax Refund' for more details. And, as always, check with your tax advisor if you have questions.
|
Get "The Chuck Bowen Online Show & Podcast" automatically delivered to you by subscribing in iTunes!
