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1 time tax credit on your 2006 tax return


 
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PostPosted: Tue Jan 16, 2007 4:43 am    Post subject: 1 time tax credit on your 2006 tax return Reply with quote

The federal excise tax has been charged 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 flate fee/rate phone service had nothing to do with the distance & the length of the phone call. Therefore, the excise tax should/could not be assessed.But the challengers of the old law also demanded resitution. So the IRS has announced that a 1-Time credit will be available when we file our 2006 Tax Return. 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 single with just you as a dependent, you get to claim a $30.00 credit on line 71 of your 1040.

If you file a child or a parent as your dependent, you claim $40.00.

If you file as married with children, you claim $50.00 if one child, $60.00 if two children.

In all cases, the most individuals can get is $60.0 - UNLESS you have all your phone bills starting AFTER Feb. 28, 2003 through July 31, 2006, then you can add up the ACTUAL TAX AS IT APPEARS ON YOUR BILLS AND CLAIM THAT FOR A CREDIT. If that is the case you CAN NOT use line 71 on your tax return. You have to complete a special form number 8913 & attach it to your tax return. Individuals ysing the special form 1040EZ must attach form 8913 also. It also states that, If you paid the federal excise tax on your long-distance Internet plan, you can request the telephone tax refund. Internet long distance plans include broadband VoIP long-distance plans.

For more information go to the special website the IRS has set up for this at::

http://www.irs.gov/newsroom/article/0,,id=157706,00.html

Finally we get something more from the IRS.....

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