Federal telephone excise tax credit
This entry was posted on 1/27/2007 12:20 PM and is filed under uncategorized.
It is possible to not qualify for the Federal telephone excise tax credit. My reading of the instructions finds the requirement that you actually paid some of the tax during some of the 41 month period the credit covers. That is, from 3/1/03 to 7/31/06. In the situation where an adult lives with their parents, they may not have paid any of the federal excise tax on long distance.
Cell phones qualify just as much as home phones do for the credit.
Dependents, those claimed by another, may qualify for the credit, but they must use the actual amounts, typically from their cell phone. The standard amount is not allowed to be claimed by dependents.
Following the general accounting rule, parents and dependents can not both claim the same Federal excise tax paid.
