Telephone Tax Refund

[Karen G]

I just read about this tax refund in the paper today. Here is the IRS info. Just about everyone who has a phone with long distance charges over the last few years is eligible.

I printed out the IRS page to take with us to our accountant to be sure we get this refund.

 

[Rose Pink]

I am sooo confused . We have cell phones, a land line for dh's business use and the fax machine. We also have a separate long-distance carrier for the land line. I just shredded all the old bills a couple of days ago so would have to take the standard amount. However, part of the cell phone bill and all of the land line and long-distance carrier were reimbursed by dh's employer so I am assuming they will claim the refund but we would still be entitled for the cell phones. This is one for our tax accountant to figure out. Thanks for the heads up.

I'm still wondering what happened to the line item deduction for college tuition. It isn't there this year.

 

[Amy]

Karen, thank you for that link! I remember reading about this awhile ago but I have completely forgotten about it.

 

[Dave M]

I'm still wondering what happened to the line item deduction for college tuition. It isn't there this year.

It's not there because the tax law provision allowing a higher education deduction expired and had not been extended by Congress by the time the U.S. Treasury had to make a decision on what to include in the 2006 tax forms.

However, the provision allowing a deduction for up to $4,000 has been extended. To claim a 2006 deduction,

The deduction for tuition and fees will be claimed on Form 1040, line 35, “Domestic production activities deduction.” Enter "T" on the blank space to the left of that line entry if claiming the tuition and fees deduction, or "B" if claiming both a deduction for domestic production activities and the deduction for tuition and fees. For those entering "B," taxpayers must attach a breakdown showing the amounts claimed for each deduction.

The link above also includes instructions for claiming a deduction for sales tax in lieu of state income tax.

 

[Rose Pink]

I LOVE you, Dave M! Thank you so much! I noted that the IRS will not start processing such returns until Feb 3. Does that mean I should hold off filing until after then? I am ready to go after we get the W2 this week.