The IRS refers to "Federal Excise Tax". Will this be called out specifically this name on my bills, or does the "Federal Tax" appearing on my phone bills fall into this category?
- posted
17 years ago
The IRS refers to "Federal Excise Tax". Will this be called out specifically this name on my bills, or does the "Federal Tax" appearing on my phone bills fall into this category?
"Gil Faver"
It applies ONLY to federal excise tax on long distance service. It does NOT include federal excise tax on regular (local) service. ChEAr$, Harlan Lunsford, EA n LA
"Gil Faver"
When you do the arithmetic, the tradeoff is if the refund amount $30 - $60 is less than your average monthly long distance bill. That is because the 3% tax over the 36 month lookback works out to 108% of an average monthly bill. The tax is closer to 2.5% in my observation because the tax doesnt apply to fees. So if you are married and spend more than $50 a month long distance you might save a couple bucks itemizing.
"rick++" wrote
Let's be careful with terminology so as not to confuse. They can take the standard credit, or, compute their actual long distance tax credit. This regardless of if they itemize other deductions.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
The phone Co will not give you a credit. You must take your credit on your tax return. It will be the 'federal excise tax' on your long distance for 41 previous months.... Missy Doyle
She seems to be busy over on the AOL tax board, where she's been a fixture there for many, many years. And of course she's on our NAEA Webboard when time permits "this time of year". As for all of us.
ChEAr$, Harlan Lunsford, EA n LA
In the 1040A instructions Book fm the IRS, It's stated "You cannot request the credit or refund if you have already received a credit or refund fm your service Provider" This sounds like some people might have already received the credit fm their provider. Am I wrong? I need a little help on why it's written that way. I just learned about the credit and want to make sure I am eligible. Mac
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