how do i figure the telephone tax credit for 2006 1040 filing?

Answer 1

If you own a telephone (either land line, cell phone, phone card etc) that you can made long distance call any time since March 2003, you are qualified for the telephone tax credit. It doesn't require that you have to had made long distance calls during that time.

The standard rates are:
Single person is $30
Two persons on the return (whether Married couple or head of household with one dependent, or single with one dependent) get $40.
Three persons on the return (any combination of taxpayer and dependents) get $50
Four or more persons on the return get $60

If you have actual telephone bills receipts and had more excise tax taken out than the standard rate, you can deduct the actual amount. Make sure you have record to support your claim.

If you are self-employed and filing schedule C, you can't claim a separate telephone tax credit for your business.

Best wishes.

Answer 2

Take the standard deduction offered for the number of exemptions claimed unless you have all of your receipts to back up the other than standard deduction you might claim (see page 60 of the 2006 1040 Instruction manual). No headaches that way!