question.jpgIn Federal Income Tax

What is the one-time federal telephone excise tax credit?

If you paid any long-distance or bundled-services phone bills between March 1, 2003 and July 31, 2006, you are entitled to a one-time credit which you can claim on your 2006 tax return. If you have records of your actual payments over this time (i.e., your phone bills), you can claim a credit in the amount of the actual tax you paid. If not, which is likely the case, you claim a standard credit. That credit ranges between $30 and $60 depending on how many personal exemptions you have – you can claim $30 if you have one personal exemptions, and you can claim an additional $10 for each personal exemption you have, up to a maximum credit of $60 (i.e., if you have four or more personal exemptions).