2006 tax credit........

[Strut10]

My uncle is a CPA and I asked him about this. This is legit. Make sure you get it.

Subject: Print this out and put in 2006 tax return folder.

It is an easy $30 to $ 60.

A SPECIAL ONE TIME TAX CREDIT ON YOUR 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 retu rn. 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.

[OJR]

Re: 2006 tax credit........

Thanks!!

For once your post is worthwhile instead of magnumitis!! LOL!!

[Strut10]

Re: 2006 tax credit........

[ QUOTE ]

Thanks!!

For once your post is worthwhile instead of magnumitis!! LOL!!

[/ QUOTE ]

You're quite welcome!!

I'm a wealth of pertinent knowledge to the enlightened and unenlightened, as well.

[wtnhunt]

Re: 2006 tax credit........

Thanks for the heads up. Wonder if turbo tax will have this on its updates?

[Guest Andrea]

Re: 2006 tax credit........

Somehow, I kept expecting this to be a joke.............

Thanks!!!

[c_lou]

Re: 2006 tax credit........

Not a joke. Snopes has it as being true.