Many state taxpayers fail to claim phone-tax credit

Is it too much bother to pick up a penny on the ground? How about $30 to $60?

Almost one-third of Nevada taxpayers so far have failed to claim an income tax credit of that amount.

The Internal Revenue Service this year is offering taxpayers a one-time credit of $30 and $60 for telephone tax refund, depending on the number of dependents.

“It’s free money,” said IRS spokesman Raphael Tulino. “Hey, take it.”

Anyone who has a landline or wireless phone qualifies for the tax credit.

More than one-quarter of individual taxpayers nationally didn’t claim the credit.

About 350,000 or 30 percent of the 1,174,000 individual tax returns filed by Nevadans failed to request the credit from the excise tax, Tulino said.

That does not include the 96,000 taxpayers who took a tax filing extension and are scheduled to file their return by Oct. 15.

Nevadans who ignored the tax credit still could save at least $10.5 million by filing an amended return, Form 1040X, to collect the money.

One way to take advantage of the tax break is to visit irs.gov, the government agency’s Web site. Taxpayers will find instructions and can download a form to use.

On amended returns, taxpayers need to complete line 15 to get the credit. If the taxpayer is an individual, the credit is $30. For couples, it’s $40. Families of three qualify for $50, based on three exemptions. Families of four or more dependents, including the taxpayer, get the maximum of $60.

The IRS also allows individuals to add up taxes from 41 months of telephone bills, but few are taking that option.

The tax credit stems from a court ruling that the government should not have been collecting an excise tax on long-distance service although the tax continues to apply to local phone service.