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Discussion Starter · #1 ·
Here's a way to get money and buy more bling bling for your GL1800.


http://money.CNN.Com/2006/05/25/news/te ... /index.htm

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 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 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 - t his 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 the 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.
 

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Thats great! The only problem I see is that the IRS is discriminating based on marital status. Isn't that a civil rights violation? The single people are being unfairly taxed.
 

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MotorcycleBoy said:
Thats great! The only problem I see is that the IRS is discriminating based on marital status. Isn't that a civil rights violation? The single people are being unfairly taxed.
A single person files for the credit and gets $30. A married couple files for the credit and they get $40-$60 to split between them ($20-$30)...


It is unfair...., We should reduce the credit for the single person.... -bg-
 
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