Can anyone point me to details about a long distance phone tax rebate?

Question

I understand that there is going to be a phone tax rebate for a certain tax paid on long distance during certain years. According to the article I read, you'll be able to itemize if you have records or take a "standard" deduction. Does anyone have details on what that tax is, the exact dates, etc.? I have our phone bills covering the time in question and would like to sit down and figure out which is better (itemizing or not) for my situation. But I need to know, especially, what tax I should be looking for on the bills.

Answer 1

If you want to receive the standard amount of the credit:

$30 for returns with 1 exemption
$40 for returns with 2 exemptions
$50 for returns with 3 exemptions
$60 for returns with 4 exemptions

just enter the appropriate amount on Line 71 of Form 1040, Line 42 of the 1040A, or Line 9 of the 1040EZ.

If you have the last 40 months of phone bills and want to take actual costs, use Form 8913 and transfer that amount to the lines indicated.

Here is Form 8913: http://www.irs.gov/pub/irs-pdf/f8913.pdf

Finally, if you are not required to file an income tax return, and are not a dependent on another person's return, you can still get the credit paid to you by filling out Form 1040EZ-T and mailing it in.

Here is Form 1040EZ-T: http://www.irs.gov/pub/irs-pdf/f8913.pdf

You can even get this credit for deceased taxpayers. See the instruction to 1040EZ-T for details.

Answer 2

G L is correct on the rules for getting the rebate, and how much it is, but doesn't tell you how.

There's a line on this year's 1040, 1040A and 1040EZ to claim this. If you are eligible for the rebate, you enter the amount of the rebate on that line. On all three versions of the 1040, it's down in the payments section, near where you'd enter your taxes withheld that show on your W-2. You enter either the standard amount, the $30-$60 depending on family size, or else the total that you added up from all your phone bills - if you're entering the total, then there's another form you have to also file to show the detail - most people would just enter the allowance of $30-$60. You do NOT have to itemize deductions to get this.

If you are not filing a return, but qualify for the rebate, there's a form 1040EZ-T that is used to just file for the rebate. Do NOT use this if you are filing a tax return.

Answer 3

If you can find your bills, and add up all the excise tax you paid on long-distance telephone service over a certain period of time, you'll be able to claim a rebate for that amount.

The rebate applies to tax you paid on long-distance phone services billed to you after Feb. 28, 2003, and before Aug. 1, 2006, the IRS said in a recently published notice.

Answer 4

I went to HR Block to get my taxes done and I did not itemize. They told me that if I had long distance on my phone that my rebate would be about $60. So I would assume that you dont have to itemize to get this rebate. But the best place for me to point you, is the people that are doing your taxes. A tax preparer can answer your questions.

Answer 5

NEW YORK (CNNMoney.com) -- If you paid for long-distance phone service between March 2003 and July of this year, you can bank on getting a refund between $30 and $60 on your 2006 federal tax return.

The refund reimbursement for payment of the 3 percent federal excise "luxury" tax on long-distance service, the origins of which date back to 1898 to help pay for the Spanish-American War.

In May, then-Treasury Secretary John Snow characterized the tax as an "outdated, antiquated tax that has survived a century beyond its original purpose, and by now should have been ancient history."

If you want to fish through 41 months worth of phone bills to calculate how much you actually paid, you can claim that amount on your return.

Otherwise, the IRS announced Thursday you can claim $30 if you're filing a 2006 return with one exemption; $40 for two exemptions; $50 for three exemptions and $60 for four or more exemptions.