Telephone Tax Refund Question

"William Brenner" wrote

He can't file a 1040-T if he's your dependent. The tax loss to you not claiming him is greater than the refund if he were to file separately for the refund.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

I believe there is a basic misunderstanding here - what is an "exemption"? According to the instructions for form

It would be wrong, procedurally not morally :-) I thought the more famous words were "I am not a crook"

You are welcome!

The standard amounts are based on the number of exemptions claimed. As he is your dependent, he would not be entitled to any exemption on his own tax return and therefore he would not be entitled to the $30 rebate. Therefore, you get to file for $50 based on three exemptions.

I thought surely this was answered somewhere above.

anyway, yes, it's based on # of exemptions, so 50$ will be correct. If he's your exemption then he can't file that ... T EZ form, whatever it's called.

Hmm, let's see now. That's be... 25$, please! (grin

ChEAr$, Harlan Lunsford, EA n LA

You told us he is your dependent, so he cannot claim himself and you might as well claim him. Telephone tax refund is $50. Meanwhile if he has his telephone bills and adds up what he paid in the allowed period, he can deduct those amounts on his own tax return even if he claims 0 dependents and even if he otherwise would not have to file a return. If he has no phone bills, he does not claim a telephone tax refund. __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

"I am not a crook" may be the more famous words, but during the infamous oval office tapes, the same Dick told John Dean that while raising a million dollars for bribes would be easy, "that would be wrong." In the heady days of impeachment hearings and the Supremes' decision that the tapes must be released (including the memorable picture of that "other Dick's" Rosemary demonstrating how she might have contorted herself to accidentally erase that notable 17-minute gap on a particularly sensational tape), _all_ of those things were fleetingly _famous_. [I know this strays OT, but other history-minded folks might be interested in a reminder. With apologies to the "currently-famous" Dick Adams.] Bill

If he paid the telephone tax after February 28, 2003 he can file the 1040-EZ-T claiming refund of actual taxes paid. __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

This is very interesting. The 1040-EZ-T states that even if your exemptions are zero (obviously someone else's dependent) you can still claim the credit if you use the actual method via Form 8913. IRS Pub 17 on page 248 explicitly states that a dependent can not claim the credit. Obviously a conflict. Assuming a dependent had the actuals and filed the

I don't think so.

If your dependent parent actually paid her dentist for her own dental work, you cannot claim those medical expenses since you did not pay them. Notwithstanding the fact that she is your dependent. If she pays her phone bills, why would you say this affects in any way how you claim your telephone tax rebate.

Why would you think a taxpayer has to use the same method to claim the telephone tax rebate that the dependent uses? __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

I agree with you. The IRS Notice states that one must look to the tax form instructions. The instructions state that even if you claim zero exemptions you can file for a refund of actual taxes paid. Therefore, the statement in IRS Pub

Hey Arthur... have you seen the latest guidance from the IRS (Notice 2007-11) that clarifies and amplifies Notice