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DON'T FORGET THE EXCISE TAX REFUND!

April 08, 2007

It's a chilly Easter in most of the country, but sunny here in Des Moines. As it's a holiday, we'll stick with an easy tip today.

The IRS says that millions of eligible taxpayers are failing to claim the telephone excise tax refund. Anybody who has paid a long-distance phone bill in the past three years can claim this as a "gimme" tax credit, whether you itemize or not.

If you have lots of time and you have spent a lot of time on the phone, you can figure your actual refund for the last three years, but most of us will just claim the standard amount, based on the number of personal exemptions on your 1040:

* One exemption, the standard refund amount is $30;
* Two exemptions, the standard refund amount is $40;
* Three exemptions, the standard refund amount is $50;
* Four exemptions or more, the standard refund amount is $60.

There are a few people who don't qualify for the credit: those who only use prepaid calling cards or prepaid cell phones. Everybody else with a long distance bill qualifies. You can check the details here if you aren't sure.

To claim the refund, just put your number -- $30, $40, $50 or $60 -- on your 1040. It goes on Line 71, if you file the long form.

Click to enlarge.