Thursday, December 7, 2006

Give Credit Where Credit is Due

I am not a tax preparer, but thought I'd pass this tidbit along: As you wrap up your financial records for the year 2006, please don't forget to make a note to take the "federal excise tax refund credit."
You can claim the credit on line 71 of the 1040 form. A similar line will be available if you file the short form 1040A. If you know someone who no longer files a tax return AND they have their own land phone in their home and have been paying a phone bill for years, make sure they know about this form 1040EZ-T.
You can get up to $60 back.. and this credit is a refundable credit. That means you get this money, no matter how the rest of your tax return works out. If you would end up owing the IRS a balance, the refund will reduce that balance you owe. If you end up getting a refund, the credit will be added and you get a bigger refund by that $30 to $60, depending on how many dependents are on your return.