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nreigelm@pahouse.netState Rep. Harold James
D-Philadelphia
www.pahouse.com/james
James reminds residents of one-time tax credit
PHILADELPHIA, Nov. 27 – State Rep. Harold James is reminding residents that they may be eligible for a one-time tax credit on their 2006 federal tax return.
James, D-Phila., said the refund is the result of successful federal court cases across the country that challenged the federal excise tax that had been assessed on toll calls according to distance and length of call.
“Even when phone companies transitioned to flat-fee phone service, the federal government continued to assess the excise tax,” James said. “People have been paying each month for a tax that doesn’t really make any sense anymore.”
Phone companies were advised by the Internal Revenue Service to stop assessing the tax in August 2006. Rather than requiring people to gather all of their phone bills for the past few years, the IRS has created a general refund structure to determine the amount of the refund, James said.
A single person with no dependents can claim a $30 credit on their form 1040. A single person filing with a child or parent as a dependent, or a married couple with no dependents can claim $40. A married couple with one child can claim $50; a married couple with two children can claim $60.
James said people claim the credits on line 71 of the 1040. There will be a similar line on the short form as well, James said. Even people who do not file a tax return, but have been paying a phone bill can complete a 1040EZ-T.
James is advising residents who have questions to contact their tax advisor or visit the IRS Web site at www.irs.ustreas.gov/.
D-Philadelphia
www.pahouse.com/james
James reminds residents of one-time tax credit
PHILADELPHIA, Nov. 27 – State Rep. Harold James is reminding residents that they may be eligible for a one-time tax credit on their 2006 federal tax return.
James, D-Phila., said the refund is the result of successful federal court cases across the country that challenged the federal excise tax that had been assessed on toll calls according to distance and length of call.
“Even when phone companies transitioned to flat-fee phone service, the federal government continued to assess the excise tax,” James said. “People have been paying each month for a tax that doesn’t really make any sense anymore.”
Phone companies were advised by the Internal Revenue Service to stop assessing the tax in August 2006. Rather than requiring people to gather all of their phone bills for the past few years, the IRS has created a general refund structure to determine the amount of the refund, James said.
A single person with no dependents can claim a $30 credit on their form 1040. A single person filing with a child or parent as a dependent, or a married couple with no dependents can claim $40. A married couple with one child can claim $50; a married couple with two children can claim $60.
James said people claim the credits on line 71 of the 1040. There will be a similar line on the short form as well, James said. Even people who do not file a tax return, but have been paying a phone bill can complete a 1040EZ-T.
James is advising residents who have questions to contact their tax advisor or visit the IRS Web site at www.irs.ustreas.gov/.
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