Discussion:Fed Excise Tax Telephone credit

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Discussion Forum Index --> Tax Questions --> Fed Excise Tax Telephone credit


Bruschi (talk|edits) said:

9 February 2007
some phone bills list Federal Excise Tax and Federal Universal Service Fee- Long Distance. Are both considered eligible or just the "Excise"?

Lphillips (talk|edits) said:

9 February 2007
Just the Federal Excise Tax on long distance (not local) service. This is 3% of long distance charges.

Deback (talk|edits) said:

February 9, 2007
No, not the Universal Fee. I just talked to my first Sch C client with over $25,000 of net income. We agreed on the phone that they paid $5 per month for the seven phones they have (which includes cell phones, personal, and business). We both agreed it wasn't worth her time to go through 41 months of phone bills for seven phones.

Blrgcpa (talk|edits) said:

9 February 2007
Take the allowed standard deduction for the telephone tax refund.

PVVCPA (talk|edits) said:

9 February 2007
Check out this article on the IRS website:

http://www.irs.gov/taxtopics/tc612.html

This article says nothing about the $25,000 gross income rule. Has the IRS changed their position? Are we allowed to just claim the standard amount for clients with a Schedule C exceeding $25K?

Please don't make me ask my Real Estate Agent clients to bring in their phone bills!

Dennis (talk|edits) said:

9 February 2007
Read more carefully. You need the $25K in gross receipts to qualify to use the simplified method.

PVVCPA (talk|edits) said:

9 February 2007
Dennis, Thank you. I was, in fact, just re-reading my tax update book after I made my post, and I now understand that my previous post makes no sense. Please disregard it.

Deback (talk|edits) said:

February 10, 2007
Please disregard the part about $25,000 in my response, too. I actually meant to say this was the first client who is deducting the actual tax paid and not the standard credit.

Fredcampo (talk|edits) said:

March 1, 2007
Single taxpayer has two separate cells and phone numbers. Each paid the excise tax. Entitled to 2 credits? Can't find anything about this in IRS instructions.

Deback (talk|edits) said:

March 1, 2007
To get the total credits, you'll have to fill out Form 8913 and combine the two phones to compute the actual federal tax paid on long-distance service.

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