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Subject Author Date
Telephone Tax Refund Question William Brenner 12-07-2006
Posted by William Brenner on December 7, 2006, 8:30 am
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 I posted this query in an earlier thread, but received zero
responses. Here it is again:

My wife and I have a zero income adult dependent son who
does not live with us. We provide all of his funding while
he is writing the next "Great American Novel". He has had a
telephone for the designated time period and has paid the
phone bills from the funds given him.

In applying for the refund, should we include him as an
exemption -- as we do on our tax return -- and claim $50 (3
exemptions) or file for $40 for the two of us and have him
file separately for $30, the one exemption amount?

The $20 difference is of no great importance. I just want to
do it correctly. Or would either way be correct? =93Double
dipping=94 is not an option that I would consider. In the
famous words of a former (resigned) U.S. President: "That
would be wrong".

Thank you for your help in making this momentous decision.

Bill

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Posted by Paul Thomas, CPA on December 8, 2006, 2:45 am
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> I posted this query in an earlier thread, but received zero
> responses. Here it is again:
>
> My wife and I have a zero income adult dependent son who
> does not live with us. We provide all of his funding while
> he is writing the next "Great American Novel". He has had a
> telephone for the designated time period and has paid the
> phone bills from the funds given him.
>
> In applying for the refund, should we include him as an
> exemption -- as we do on our tax return -- and claim $50 (3
> exemptions) or file for $40 for the two of us and have him
> file separately for $30, the one exemption amount?
>
> The $20 difference is of no great importance. I just want to
> do it correctly. Or would either way be correct? =93Double
> dipping=94 is not an option that I would consider. In the
> famous words of a former (resigned) U.S. President: "That
> would be wrong".
>
> Thank you for your help in making this momentous decision.

He can't file a 1040-T if he's your dependent. The tax loss
to you not claiming him is greater than the refund if he
were to file separately for the refund.

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Arthur Kamlet on December 9, 2006, 7:01 am
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>> I posted this query in an earlier thread, but received zero
>> responses. Here it is again:
>>
>> My wife and I have a zero income adult dependent son who
>> does not live with us. We provide all of his funding while
>> he is writing the next "Great American Novel". He has had a
>> telephone for the designated time period and has paid the
>> phone bills from the funds given him.
>>
>> In applying for the refund, should we include him as an
>> exemption -- as we do on our tax return -- and claim $50 (3
>> exemptions) or file for $40 for the two of us and have him
>> file separately for $30, the one exemption amount?
>>
>> The $20 difference is of no great importance. I just want to
>> do it correctly. Or would either way be correct? =93Double
>> dipping=94 is not an option that I would consider. In the
>> famous words of a former (resigned) U.S. President: "That
>> would be wrong".
>>
>> Thank you for your help in making this momentous decision.

> He can't file a 1040-T if he's your dependent.

If he paid the telephone tax after February 28, 2003 he can
file the 1040-EZ-T claiming refund of actual taxes paid.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on December 8, 2006, 2:45 am
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William Brenner wrote:

> I posted this query in an earlier thread, but received zero
> responses. Here it is again:
>
> My wife and I have a zero income adult dependent son who
> does not live with us. We provide all of his funding while
> he is writing the next "Great American Novel". He has had a
> telephone for the designated time period and has paid the
> phone bills from the funds given him.
>
> In applying for the refund, should we include him as an
> exemption -- as we do on our tax return -- and claim $50 (3
> exemptions) or file for $40 for the two of us and have him
> file separately for $30, the one exemption amount?

I believe there is a basic misunderstanding here - what is
an "exemption"? According to the instructions for form
1040EZ-T, it is the same number you would use if you had to
file a regular 1040 form. Thus, if you file as usual
(claiming him as your dependent) you have a total of 3
exemptions and would claim the $50 refund on line 71 of your
1040. If he qualifies to be your dependent but you elect NOT
to claim him, he CANNOT claim his own exemption per basic
tax law. In this latter case, your refund would be reduced
to $40 and his would still be $0.

If your dependent son were to file a tax return - because of
taxable income, for example - he would not be allowed to
claim ANY exemption. Therefore, if he files form 1040EZ-T
instead, his claim for refund is $0 (not the $30 you
assumed).

IOW, giving up an exemption not only costs you the $3,300
exemption deduction, but reduces your telephone tax refund
by $10.

BTW, your statement above seems to imply that you need to
file a separate form to claim the refund. Not true, it is
claimed on your regular form 1040 form, line 71.

> The $20 difference is of no great importance. I just want to
> do it correctly. Or would either way be correct? =93Double
> dipping=94 is not an option that I would consider. In the
> famous words of a former (resigned) U.S. President: "That
> would be wrong".

It would be wrong, procedurally not morally :-)
I thought the more famous words were "I am not a crook"

> Thank you for your help in making this momentous decision.

You are welcome!

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bill on December 8, 2006, 3:23 pm
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smithff33@aol.com (Herb=A0Smith) posted:
> William Brenner wrote:

>> I posted this query in an earlier thread, but
>> received zero responses. Here it is again:
>> My wife and I have a zero income adult
>> dependent son who does not live with us. We
>> provide all of his funding while he is writing
>> the next "Great American Novel". He has had
>> a telephone for the designated time period
>> and has paid the phone bills from the funds
>> given him.
>> In applying for the refund, should we include
>> him as an exemption -- as we do on our tax
>> return -- and claim $50 (3 exemptions) or file
>> for $40 for the two of us and have him file
>> separately for $30, the one exemption
>> amount?
>> <material elided>

>> The $20 difference is of no great importance.
>> I just want to do it correctly. Or would either
>> way be correct? "Double dipping" is not
>> an option that I would consider. In the
>> famous words of a former (resigned) U.S.
>> President: "That would be wrong".

> It would be wrong, procedurally not morally :-)
> I thought the more famous words were "I am
> not a crook"

"I am not a crook" may be the more famous words, but during
the infamous oval office tapes, the same Dick told John Dean
that while raising a million dollars for bribes would be
easy, "that would be wrong."

In the heady days of impeachment hearings and the Supremes'
decision that the tapes must be released (including the
memorable picture of that "other Dick's" Rosemary
demonstrating how she might have contorted herself to
accidentally erase that notable 17-minute gap on a
particularly sensational tape), _all_ of those things were
fleetingly _famous_.

[I know this strays OT, but other history-minded folks might
be interested in a reminder. With apologies to the
"currently-famous" Dick Adams.]

Bill

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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