Friday, April 13, 2007

Income Tax Rave?

I know, I know, an income tax rave. How can that be? There’s not much to rave about when comes to income taxes unless it’s a big refund. However I did find out a couple of other things while doing my taxes that I didn’t know about and that might just help some of you get a bigger return this year. They are the “Earned Income Credit (EIC)” and the “Credit for Federal Telephone Excise Tax Paid”.
You can get your EIC if you file a1040 form, your single and did not have a child living with you and you made less than $12,590 or if married, filing jointly and made less than $14,590. If you file a 1040 EZ form, you’re single and did not have a child living with you, you must have made less than $12,120, if married and filing jointly less than $14,120. I made out good here because I was under both forms.
Now the “Federal Telephone Excise Tax Paid” states that you can get credit if you were billed for federal telephone excise tax after February 28, 2003 and before August 1, 2006 on long distance or bundled service, which we all qualify for. You can get either the standard amount or the actual amount.
The Standard amount is $30 if you’re single and did not check any box on line 5 of the tax form, if you’re married, filing jointly and checked only one box on line 5 of the tax form and $40 if you’re married, filing jointly and check no boxes on line 5 of the tax form.
If you want the actual amount of the federal telephone excise tax, you have to fill out and attach form 8913 showing the amount paid. Be sure you have your records to substantiate that amount.
Now, you cannot request a credit if you have already received a credit or a refund from your phone service provider.
I hope this helps some of you get a bigger return this year. I'm no expert and may have missed some information, so be sure to check this information in the instruction books or with a tax expert.

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