TELEPHONE EXCISE TAX REFUND
The telephone excise tax refund is a one time payment available
on the 2006 Federal tax return. This is to refund previously
collected long distance telephone taxes. This is available
to individuals, businesses and tax-exempt organizations.
Taxpayers have a choice! They can choose a standard refund
based on the total number of exemptions claimed on their 2006
return, from $ 30 to $ 60. Or they can find the old telephone
bills and use the amount indicated on them. They need to collect
all 41 months for the full amount. Use Form 8913 if you want
to compute the actual amount by quarters.
If you choose the standard amount, no special form is required;
there will be an extra line on the tax return.
Businesses and tax exempts and schedule C filers may use
a special averaging method to determine the amount to claim
if they have more than $ 25,000 in gross receipts. This is
Form 8913.
If you do not need to file a tax return there is a special
1040-T to choose the standard amount. If you want to compute
your actual tax paid, fill out Form 8913 and attach it to
the 1040-T.
During 2003, nearly 24 million taxpayers received an advance
payment of the increase to the Child Tax Credit. A change
in the law raised this credit from a maximum of $600 to $1,000
per child, with the increase sent to eligible taxpayers beginning
in July. Taxpayers received up to $400 for each qualifying
child claimed on their 2002 return.
Now you must subtract this advance payment when figuring
the Child Tax Credit to claim on your 2003 tax returns. If
the check was reduced (offset) because of back taxes owed
or certain other debts, the total before offset is the amount
to use. Each spouse is considered to have received one-half
of any advance payment made to a married couple. If the advance
payment was more than the taxpayer’s allowable credit,
the taxpayer does not have to repay the difference.
The IRS sent each advance payment recipient a Notice 1319
with the payment amount (before any offset) shortly before
the check was mailed. A taxpayer who doesn’t have this
notice may check the IRS Web site at www.irs.gov
2/7/7
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