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New Tax Credit for Phone Customers

If you had long distance phone service in the past 3 years, you can get a tax credit on your 2006 tax return. The IRS used to make long distance phone companies charge customers an excise tax. This tax showed up on your phone bill. In August of 2006 the courts decided that the excise
tax was not OK. They ordered the IRS to stop collecting the tax AND to refund money to phone customers.

On your 2006 federal income tax returns (filed in 2007), you can claim a credit for the amount of the excise tax plus interest on long-distance telephone service billed after February 29, 2003. This is a one-time refundable credit. That means if you get a tax refund it will be added on to your refund amount.

Click here for details on how to get your credit.

 
By: Iowa Legal Aid - 01/12/2007
 
 
 
 
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