2006 Texas Sales Tax Tips!!

[It's A Good Life!!]

Just a reminder that all Texas sales tax is deductible again for 2006 on itemized returns. Although a very tedious task, we used an Excel spreadsheet and tracked every bit of sales tax we paid for 2006. We came up with over $12,000. Here is a list to give you an idea where to find sales tax, not all inclusive of course:

Restaurants & Fast Food (be sure your receipt shows the sales tax, often times they do not and I just ask them for it, no problem.)

Stores like Wal-Mart (groceries have very little tax, but if you also bought household items on that receipt then you paid sales tax.)

Your bills: electric, gas, water, phone (land line), cell phone's, etc. (You will find the sales tax and local tax on your statements)...both are deductible.

Any new used vehicle, motorhome, boat, toys, etc.

Our process is to log the sales tax from our receipts and statements monthly or every two-weeks, whatever works onto an Excel spreadsheet. Categories are:

*Date, *Name of the Place, *Total Amount $, *Sales Tax Paid $

At the end of the year we print the ledger and attach it to the envelope with receipts. That's it! When I first started tracking sales tax a couple years ago I was only logging in actual receipts. Then I discovered a boatload of sales tax and local taxes on my utility statements. I use the date I personally paid the bill or the auto pay date, which turns a statement into a receipt. As long as I can prove I paid the amount reflected on a statement I'm good to go.

Don't forget this year:
The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.
· Choosing the standard refund amount? You'll find an extra line on your tax returns for the refund.
· Find those old phone bills? You can figure the refund using the actual amount of tax paid. Fill out Form 8913, Credit for Federal Telephone Excise Tax Paid, and attach it to your return.
· Don't need to file a return? You can still request the refund. Use the new Form 1040EZ-T, Request for Refund of Federal Telephone Excise Tax, to choose the standard amount. Attach Form 8913 to Form 1040EZ-T if you use the actual amount.

Hope this helps...Have a Merry Christmas & Happy New Year!!

[It's A Good Life!!]

Just a reminder that all Texas sales tax is deductible again for 2006 on itemized returns. Although a very tedious task, we used an Excel spreadsheet and tracked every bit of sales tax we paid for 2006. We came up with over $12,000. Here is a list to give you an idea where to find sales tax, not all inclusive of course:

Restaurants & Fast Food (be sure your receipt shows the sales tax, often times they do not and I just ask them for it, no problem.)

Stores like Wal-Mart (groceries have very little tax, but if you also bought household items on that receipt then you paid sales tax.)

Your bills: electric, gas, water, phone (land line), cell phone's, etc. (You will find the sales tax and local tax on your statements)...both are deductible.

Any new used vehicle, motorhome, boat, toys, etc.

Our process is to log the sales tax from our receipts and statements monthly or every two-weeks, whatever works onto an Excel spreadsheet. Categories are:

*Date, *Name of the Place, *Total Amount $, *Sales Tax Paid $

At the end of the year we print the ledger and attach it to the envelope with receipts. That's it! When I first started tracking sales tax a couple years ago I was only logging in actual receipts. Then I discovered a boatload of sales tax and local taxes on my utility statements. I use the date I personally paid the bill or the auto pay date, which turns a statement into a receipt. As long as I can prove I paid the amount reflected on a statement I'm good to go.

Don't forget this year:
The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.
· Choosing the standard refund amount? You'll find an extra line on your tax returns for the refund.
· Find those old phone bills? You can figure the refund using the actual amount of tax paid. Fill out Form 8913, Credit for Federal Telephone Excise Tax Paid, and attach it to your return.
· Don't need to file a return? You can still request the refund. Use the new Form 1040EZ-T, Request for Refund of Federal Telephone Excise Tax, to choose the standard amount. Attach Form 8913 to Form 1040EZ-T if you use the actual amount.

Hope this helps...Have a Merry Christmas & Happy New Year!!

[deborahcp]

is this for federal tax returns ? ..... And why Texas?

[It's A Good Life!!]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by deborahcp:
is this for federal tax returns ? ..... And why Texas? </div></BLOCKQUOTE>

Hi deborahcp,

We live in Texas and we have no state income tax deducted from our paychecks, only federal. We can deduct all sales tax paid during the year if we itemize on our return. I'm not a tax professional or familiar with other states. However the Telephone Exercise Tax Refund is for everyone in any state according to the IRS website.

[apackof2]

By "phone" do you mean a landline or is a cell phone included also?

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by It's A Good Life!!:
Just a reminder that all Texas sales tax is deductible again for 2006 on itemized returns. Although a very tedious task, we used an Excel spreadsheet and tracked every bit of sales tax we paid for 2006. We came up with over $12,000. Here is a list to give you an idea where to find sales tax, not all inclusive of course:

Restaurants & Fast Food (be sure your receipt shows the sales tax, often times they do not and I just ask them for it, no problem.)

Stores like Wal-Mart (groceries have very little tax, but if you also bought household items on that receipt then you paid sales tax.)

Your bills: electric, gas, water, phone (land line), cell phone's, etc. (You will find the sales tax and local tax on your statements)...both are deductible.

Any new used vehicle, motorhome, boat, toys, etc.

Our process is to log the sales tax from our receipts and statements monthly or every two-weeks, whatever works onto an Excel spreadsheet. Categories are:

*Date, *Name of the Place, *Total Amount $, *Sales Tax Paid $

At the end of the year we print the ledger and attach it to the envelope with receipts. That's it! When I first started tracking sales tax a couple years ago I was only logging in actual receipts. Then I discovered a boatload of sales tax and local taxes on my utility statements. I use the date I personally paid the bill or the auto pay date, which turns a statement into a receipt. As long as I can prove I paid the amount reflected on a statement I'm good to go.

Don't forget this year:
The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.
· Choosing the standard refund amount? You'll find an extra line on your tax returns for the refund.
· Find those old phone bills? You can figure the refund using the actual amount of tax paid. Fill out Form 8913, Credit for Federal Telephone Excise Tax Paid, and attach it to your return.
· Don't need to file a return? You can still request the refund. Use the new Form 1040EZ-T, Request for Refund of Federal Telephone Excise Tax, to choose the standard amount. Attach Form 8913 to Form 1040EZ-T if you use the actual amount.

Hope this helps...Have a Merry Christmas & Happy New Year!! </div></BLOCKQUOTE>

[It's A Good Life!!]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by apackof2:
By "phone" do you mean a landline or is a cell phone included also? </div></BLOCKQUOTE>

Hi apackof2,

Both our landline and cells phones. We have T-Mobile with sales and local taxes on each monthly statement...according to the IRS this is deductible if you itemize your return.

[loranimal]

You can use any and all phones that you paid the bill on. If you go to the IRS web site you can find all the info. If you have all your bill for the past 3-4 years you will find out it starts to add up. I came up with $149.87 from my bills.

Carl