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Federal Telephone Tax Refund

Did you pay long-distance telephone tax? Want to pay less tax and even get money back from the government?

Quick Facts
What is it?
The Telephone Tax Refund is a one-time payment available to you on your 2006 federal income tax return. It is available to anyone who paid long-distance taxes on landline, cell phone, or internet phone service.

What do I get?
You can get cash back from the government as part of your yearly tax return. The IRS will refund you any taxes you paid on long-distance service between February 28, 2003 and August 1, 2006. Another option is to claim the standard refund amount, which is for taxpayers who don’t have all of their old phone bills. It is worth $30 for taxpayers claiming one exemption, $40 for two, $50 for three, and $60 for taxpayers claiming four or more exemptions.

The Telephone Tax Refund is fully refundable, which means that you can get more money back from the government than you actually paid in taxes throughout the year. For example, let's say you qualify for a credit of $60; even if you owe less than $60 in taxes, you can still get the full $60 refunded to you.

Look Out
While taking the standard amount is optional, it is the easiest way to get a refund. There is no additional paperwork involved, so you don’t have to gather up 41 months worth of phone bills.


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