FYI

I don't know how true this is. If anyone has heard this let me know.

Federal Excise Tax
By JoAnne Purtan
July 20, 2006

Your monthly phone bill is about to go down and that?s just the beginning of the good news. Starting August 1, not only will a ridiculous tax be removed from your home and cell phone bill, but because you?ve long been paying it you?ll have money coming back to you.

It?s called the Federal Excise Tax, a 3 % tax on long-distance phone service, including cell phone service. It was a tax started back in 1898 as a way to fund the Spanish American war.

After many court challenges the IRS says it will stop collecting the tax August 1 and even better you?re due a refund for what you?ve paid over the last three years.

That can amount to hundreds of dollars.

You?ll be able to file a refund claim with your 2006 federal income tax returns.

Within the next couple weeks, the treasury department is going to announce what you?ll need to do that, but the IRS says you won?t have to go digging through old telephone bills.

Also, regarding that cell phone of yours, you may want to think twice before buying the insurance plan that?s offered.

All major carriers offer policies that cover lost, stolen or damaged phones. The policies typically cost $ 4 to $ 5 a month and carry a $ 35 to $ 100 dollar deductible.

Consumer Reports says it?s just not worth it for most customers. In most cases the premium and the deductible would have you paying as much as you would to buy a new phone.

The magazine also reports damaged phones are often replaced with a refurbished phone that may not be the same model.

So you might want to consider cell phone insurance if your phone is a fancy model that costs $ 300 or more, then you may not be wasting your money.