cell phone +deductible?

Question

I heard that for 2006 one can deduct the money you spend on your cell phone bills on your tax return even if it is for personal use. Is that correct?

Answer 1

No that is not true. Whoever told you that should be labeled as an unrealiable source so if they ever come to you with investment ideas, run the other way.

What is true is that there is a credit for what is called the telephone tax refund. I got $60 back. You use form 8913.

Review the information at www.irs.gov and search for "telephone tax refund".

Answer 2

The old excise tax on communications bills was repealed a while ago but the government continued to collect it. You can either claim a flat credit based upon the number of exemptions that you can claim or the actual tax that you paid for the past 3 years if you can prove a larger amount.

You cannot deduct your cell phone bills but if you had a cell phone with long distance coverage for the past 3 years (or any phone service with long distance service for the past 3 years) you are eligible for the credit.

Answer 3

No. This rumor started from the tax credit for long distance calls. If you have had a land line since 2003 and paid the tax on longdistance calls, you will be getting that tax money back. It has nothing to do with cell phones.

Answer 4

you should use it for corporation applications and deduct it as an fee out of your schedule c earnings. it is likewise completely deductible using fact for one you state you do not already have one so hence very own calls would not be a controversy. additionally it fairly is a needed and genuine looking corporation fee, hence, definite deduct it. additionally, communicate on your accountant, per risk you're lacking another deductions you're able to be taking, i mean, you're already lacking the boat on your telephone calls.