Telephone Excise Tax Credit

On your 2006 tax returns, all taxpayers, over 18 and not claimed on another person’s tax return, will be entitled to claim a credit for taxes paid on long-distance telephone calls. The credit is $30 for taxpayers with one exemption (single with no children), $40 for two exemptions, $50 for three exemptions, and $60 for four or more exemptions.

The standard amount is not available to businesses and nonprofits. Businesses and non-profits must fill out Form 8913 and base their refund requests on the actual amount of tax they paid. Businesses should attach this form to the income-tax returns they normally file — Form 1120, 1120S, 1065 or 1041. Nonprofits, including churches, charities and other tax-exempt organizations, should attach it to Form 990-T.

Tax Tip

Businesses and tax-exempts can review their bills for 2 months and use a special formula to figure the refund. This method could provide you with a larger credit. Additional information can be found on the IRS’s website:www.irs.gov/newsroom/article/0,,id=161506,00.html