One Time Tax Credit on 2006 Tax Returns - MUST READ

United States
December 9, 2006 6:59pm CST
I received this today from a friend and went to snopes.com to check it out myself. It was copied word for word from snopes, and they say it's true. Please note this one time tax credit. It is true: http://www.snopes.com/business/taxes/excise.asp 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 (don't 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. Feel free to pass this on or make copies for family and friends who don't have computers.
4 people like this
14 responses
@gifana (4834)
• Portugal
12 Dec 06
Would that I could get this tax credit. I probably never paid $30 in what little time I lived in the US after I left home and had my own phone. Every little bit counts said the old lady as she -issed into the river. hehehehehe
1 person likes this
• United States
12 Dec 06
I just wish I'd saved all my old bills from 2003 to date to see how much I could have gotten back. However, we'll settle for the $40 for me and hubby. ROFL. I always appreciate your input.
@reinydawn (11649)
• United States
15 Dec 06
I think I acutally have some of mine, might have them all because when I moved I just boxed up a lot of stuff and haven't thrown it out yet... I wonder if it's worth looking for? I just looked up my account on the web and my charge was less than 70 cents a month. So at 42 months, I'm a $29.40 credit - I think I'll take the $30...
1 person likes this
• United States
16 Dec 06
Yeah, I'll take the $40 for me and hubby and be happy.
@lauriefnp (5112)
• United States
10 Dec 06
Thank You!! Any little bit that we can get back from the government is helpful. They get far too much already!
• United States
10 Dec 06
That is sooooooo true. We can use any breaks they'll allow us. Just wanted everyone to know they could claim this tax credit for 2006 only. Thanks for your response.
@msqtech (15226)
• United States
15 Dec 06
I wonder if illegal aliens can get it.?
• United States
15 Dec 06
You can only get the credit if you file taxes, so...
@tulwave (174)
• United States
21 Dec 06
Great Work! I have not used a land line for 2 years. It is all on my cell phone. According to your understanding of the bill, can I still claim it for the years I had a phone.
@reinydawn (11649)
• United States
21 Dec 06
Only for land lines, not cell phones.
• United States
22 Dec 06
Thanks reinydawn...I couldn't have answered that.
@callarse1 (4786)
• United States
4 Mar 07
Yea I heard about that, too on snopes.com. It is a nice little credit to get, really. Have a nice day and thank you for the information on here so people can take advantage of it. Pablo
1 person likes this
• United States
5 Mar 07
Always glad to help.
• United States
4 Feb 07
Thanks for this information. I just put a post it on my husbands tax papers. He was planning on seeing the accountant this week. Hopefully, our accountant is aware of this credit, put just in case ....LOL
• United States
4 Feb 07
Well, at least you're aware of it and can tell your accountant if he's not. He should have been notified about it, but everyone isn't as "up to date" as they should be all the time. Good luck.
@vhansen (2029)
• United States
11 Jan 07
That's very interesting.We've yet to file so I'll be sure and have my husband take a look at it.Hey,it's not much but considering how much we've paid in,I'll take it.;-)
• United States
12 Jan 07
That's how I felt. I'll claim it also.
@cblackink (969)
• United States
8 Jan 07
Hey thanks. I know I will owe money for last year, but a little credit here and there helps.
1 person likes this
• United States
10 Jan 07
You're welcome.
@aimee750 (1117)
• United States
15 Dec 06
I am a tax preparer and can tell you this is true. We were provided with this info several months ago. Every little bit helps. Make sure you remember to take this credit on this tax year because it is the only year you can do it.
• United States
16 Dec 06
Thanks for re-confirming it's true. I hope everyone takes advantage of it.
@msqtech (15226)
• United States
15 Dec 06
thankyou for this wonderful information it will be nice to get this and it was nice of you to share
1 person likes this
• United States
15 Dec 06
You're welcome. I love to share info like this.
@ossie16d (11826)
• Australia
10 Dec 06
Accounts with taxes and fees - Accounts with taxes and fees
This doesn't apply to me of course as I am an Australian but it is good to see all the same. It is interesting that many people do not check their utilities accounts in details, simply have a 'little grumble' when they come in and pay them. We have the same situation here in Australia with the amount charged for taxes and other fees.
1 person likes this
• United States
10 Dec 06
Ossie, I think it's universal, not strictly a US thing. We're all paying so much in fees and taxes, even if we don't realize it. I just wonder how many people actually check to see how much those fees and taxes are on their utility bills. I know we're all grumbling, no matter where we live.
1 person likes this
@Idlewild (6094)
• United States
10 Dec 06
Thanks for the tip. This has nothing to do with taxes, but my phone company still charges me $2/month for touch-tone service! How dumb is that?!
1 person likes this
• United States
10 Dec 06
I try NOT to read all the charges on my phone and electric bills. Maybe I should start checking my phone bill more closely. I nearly fainted the last time I looked at my electric bill and learned that charges for actual consumption was only half the bill; the rest was fees and taxes added in. It's incredible. Thanks so much for responding.
1 person likes this
@reinydawn (11649)
• United States
15 Dec 06
Very good research. Here is the IRS topic and all the information about it. http://www.irs.gov/newsroom/article/0,,id=164032,00.html
@kgwat70 (13395)
• United States
22 Feb 07
I just learned about this not too long ago and just did my taxes and included the phone taxes on my tax form as I was not going to let this slip by. My dad and my coworker both reminded me of this one time tax credit. I ended up claiming the $30 which helps me get some money back this year from taxes. I am very happy about this situation.
• United States
22 Feb 07
So am I, and so are a lot of other people.
@JoeyCa (1810)
• Belgium
21 Dec 06
Important info for US-citizens indeed :-)) xx