In 1898, good ol' Teddy Roosevelt and the Rough Riders needed a little help in the Spanish American War. So they added a luxury tax on telephone usage. Over 100 years later this luxury tax is still being assessed on phone bills, including cellphone bills. The tax, a 3% "federal excise tax," has been helping us win the Spanish-American War ever since. But now many federal courts and cell phone companies are being unpatriotic and repealing this tax. Sorry, Teddy, your war effort will have to find funding somewhere else.
The government has stepped in and is going to offer a telephone tax refund to compensate for these 108 years of unnecessary taxation. Anyone who has paid taxes on a landline, wireless or VoIP phone service qualifies. The refund can be filed on the 2006 federal income tax return and will give up to $60 back. Up to $60 isn't much for 108 years of a 3-percent tax on every phone bill, but free money is free money. There are a lot of specifics about the refund, so hit up the FAQ below to get the whole scoop.
