The TaxMan's Most Frequently Asked Question about the "Long Distance Tax Refund"

Telephone Tax Refund Questions and Answers

How did the government come up with the standard amounts?

The standard amount is based on actual telephone usage data, and the amount applicable to a family or other household reflects taxes paid on long-distance or bundled service by similarly sized families or households. Using this amount may be the easiest way for taxpayers to request their refund and avoid gathering months of old phone records.

Telephone industry and IRS data were used to determine the refundable standard amounts. The data showed that spending on long distance correlated directly with the number of persons in a household; therefore, a scaled refund structure was selected based on the number of exemptions a taxpayer is eligible to claim on their 2006 tax return.

What forms do I file to request the refund?

For many individual taxpayers who want to take the standard amount, there are no additional forms to file, and you only need to fill out one additional line on your regular income-tax return.

Individuals choosing the standard amount can simply fill in the amount on their regular income-tax return:

* Form 1040, Line 71;
* Form 1040A, Line 42;
* Form 1040EZ, Line 9;
* Form 1040NR, Line 69; or
* Form 1040NR-EZ, Line 21.

People who don’t need to file a return can use a new, simple form ( Form 1040EZ-T) to choose the standard amount.

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