TELEPHONE EXCISE TAX REFUND
I’ve heard about the telephone excise tax refund, but I’m confused. Do I need all of my old phone bills to claim the refund?
The short answer is no. Instead, your refund amount will depend on the number of taxpayer exemptions you claim. That’s because the IRS figured out the average telephone tax based on the number of taxpayer exemptions. If you claim one exemption, you’ll get $30 back. If you have two exemptions, you’ll get $40 back; $50 for three exemptions; and $60 for four or more exemptions. Note that the refund is a one-time credit so be sure to claim it this year.
The refund is only for taxes paid on long-distance telephone service between Feb. 28, 2003 and Aug. 1, 2006, and applies to taxes paid on any long-distance telephone service, including landline, cell phone or Voice over Internet Protocol (VoIP) services.
To claim it, there’s a new line on the 1040 form this year where you’ll enter the amount you’re eligible to receive. Even if you don’t have to file a tax return this year, you can still claim your refund. Use Form 1040EZ-T to get your money back.
If, for some reason, you’re still hanging on to phone bills from three years ago, you can calculate the taxes you paid and compare it to the IRS figures. If you can prove that you paid more taxes than the IRS amount, fill out Form 8913 to get a larger telephone excise tax refund. Federal access charges and state and local taxes charged are not included in the refund so don’t include those in your calculations if you decide to go that route.
Also be aware that amount of your refund will either increase your total refund amount or decrease the amount of tax you owe. You will not receive a separate check from the IRS for the telephone excise tax refund.
The telephone excise tax refund came about after the IRS stopped collecting the three percent federal telephone excise tax. The tax was created in 1898 to help pay for the Spanish-American War but was never taken off the books once the war ended.
Individuals, businesses and tax-exempt organizations can request it.
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