(OFF TOPIC)Good Deal Alert: special one-time tax credit

[Guest guest]

Snopes does indeed say this is true.

FW: SPECIAL ONE-TIME TAX

CREDIT ON YOUR 2006 TAX RETURN

http://www.snopes.com/business/taxes/excise.asp

This is true according to snopes.com so pass it on. I am sure the

Tax preparers know about it but for those who do the taxes themselves

it could save or get you up to $60.

A SPECIAL ONE TIME TAX CREDIT ON YOUR 2006 TAX RETURN

When it comes time to prepare and file your 2006 tax return,

make sure you don't overlook the federal excise tax refund

credit. You claim the credit on line 71 of your form 1040.

A similar line will be available if you file the short form

1040A.

What is this all about? Well the federal excise tax has

been charge to you on your phone bill for years. It is an

old tax that was assessed on your toll calls based on how

far the call was being made and how much time you talked on

that call.

The IRS has now conceded this is obsolete.. Phone companies

have been given notice to stop assessing the federal excise

tax as of Aug 30, 2006. You will most likely see the tax on

your Sep tember cutoff statement, but it should NOT be on

your October bill.

But the challengers of the old law also demanded

restitution. So the IRS has announced that a one time

credit will be available when you and I file our 2006 tax

return as I explained above. However, the IRS also

established limits on how BIG a credit you can get. Here's

how it works.

If you file your return as a single person with just you as

a dependent, you get to claim a $30 credit on line 71 of

your 1040.

If you file with a child or a parent as your dependent, you

claim $40.

If you file your return as a married couple with no children

,you claim $40.

If you file as married with children, you claim $50 if one

child, $60 if two children.

In all cases, the most you get to claim is $60.

One final point - this credit is a refundable credit. That

means you get this money, no matter how your tax return

works out. If you would end up owing the IR S a balance, the

refund will reduce that balance you owe. If you end up

getting a refund, the credit will be added and you get a

bigger refund by that $30 to $60, depending on how many

dependents are on your return.

Feel free to pass this on.