Monday, June 05, 2006
Stop Paying for the Spanish-American War!
Here's a tax refund you may have missed hearing about, and unless you haven't had a phone in your house for the last three years, it's money in your pocket. (Assuming you're in the U.S., anyway.)
To summarize briefly, the Treasury Department is going to stop collecting a federal excise tax on long-distance calls. The tax was originally implemented in 1898 (not a typo, that's 108 years ago) to help pay for the Spanish-American War. At the time, it was considered a tax on the wealthy, as most people didn't have home phone service.
But here's why you need to know about it: on your 2006 tax returns, you can file for a refund on the tax for long-distance calls made since March 1, 2003. If you don't have your phone records that far back, you will still be able to claim a standard refund -- amount to be determined later.
To summarize briefly, the Treasury Department is going to stop collecting a federal excise tax on long-distance calls. The tax was originally implemented in 1898 (not a typo, that's 108 years ago) to help pay for the Spanish-American War. At the time, it was considered a tax on the wealthy, as most people didn't have home phone service.
But here's why you need to know about it: on your 2006 tax returns, you can file for a refund on the tax for long-distance calls made since March 1, 2003. If you don't have your phone records that far back, you will still be able to claim a standard refund -- amount to be determined later.
Comments:
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Woo Hoo! You mean I'm gonna be getting something good out of those 3-hour calls to Tampa? Cool!
# posted by 
: 4:03 PM
: 4:03 PM
Umm...sort of. Three percent of the bill. BUT, you may have noticed that the government is paying interest.
I am no tax expert, and I don't keep phone records that far back. Is that a standard deduction on top of the regular standard deduction, or does it have to be itemized? My dad is an accountant, retired. I should ask him, but since he is retired, I'm sure he hasn't kept up with the different tax laws.
# posted by : 11:36 PM
: 11:36 PM
The way I read the story, there will be a standard amount you can claim. It's not a deduction from your income, though, but rather an additional refund. Realize we're not talking about hundreds of dollars (unless you're a business or really talk a lot). I checked a couple of past phone bills and found that it was in the neighborhood of 50 cents per month. But I'll gladly accept $18.
Heck, I'd take 18 dollars. The way my long distant bill were, though, I'm expecting at least 20 dollars. :-) Any kind of refund from the government is always a bonus in my book.
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# posted by : 12:48 PM
: 12:48 PM << Home
