Telephone Tax Savings for 2006
I'm sure you've heard – but the government is giving us a one time pass to deduct the federal telephone excise tax we were charged from 2003 through 2006 – 41 months of phone bills. Whether you are a one-person home office or a company of thousands – this is worth looking into.
You can calculate the amount spent manually…that means digging out EVERY SINGLE PHONE BILL for those 41 months and adding up the federal excise tax to arrive at the amount that should be deducted.
OR
There is an estimated process which will save time and valuable payroll dollars that could be used for other projects.
Attached is a PDF I found that provides easy to understand instructions – but to be safe, make sure you talk to your accountant for the scoop in your state.
For those doing your own taxes – a separate form number 8913 will need to be completed.
Check it out – you may enjoy a sizeable deduction!
Finance | Deborah Brown | 23 March 2007 |
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By Yosef Rabinowitz, March 24, 2007 @ 5:42 pm
The full refund is about 1.5 times your average pre-tax LD/Wireless bill. If you’re on a $60/month plan, you’re getting back about $90 (more if you file on extension). If you’re single, that’s triple your standard refund of $30. Cell phone users do NOT need to go through their old bills as long as they know what their monthly plan’s base fee was for each month between March ’03 and July ’06. Check out http://www.PhoneTaxRefundCalculator.com for more details and for the software I created to reduce the calculation process to a few minutes, not the 13 hours that it says on Form 8913.
By Deborah, March 25, 2007 @ 11:28 am
Thanks, Yosef – great additional information!