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What is federal excise tax on phone bill?

The federal telephone excise tax is a statutory 3 percent federal tax on local telecommunications services. It is collected from the customer by telephone companies and then passed on to the U.S. Internal Revenue Service (IRS).

How much is tax on a phone bill?

On average U.S. wireless consumers pay an average of 17.05 percent in combined federal, state, and local taxes and fees on their cell phone bills. This rate comprises a 5.82 percent federal rate and an average 11.23 percent state-local rate.

Is there tax on a phone bill?

But unlike sales, income or property taxes, wireless taxes remain largely hidden -- tacked on to the end of your monthly wireless bill and often ignored. They shouldn't be. A $60 cell phone bill actually costs the average customer $70.32.

How much is the average cell phone bill?

Average Cell Phone Bill Now Over $80 per Month!

Which is an example of an excise tax?

Excise taxes are most often levied upon cigarettes, alcohol, gasoline and gambling. These are often considered superfluous or unnecessary goods and services. To raise taxes on them is to raise their price and to reduce the amount they are used. In this context, excise taxes are sometimes known as “sin taxes.”

How much are taxes and fees?

According to the National Society of Accountants in January 2017, the average tax preparation fee for a tax professional to prepare a Form 1040 and state return with no itemized deductions is $176. If you itemize your deductions, that average fee goes up to $273.

What is the Federal Universal Service Fee on my phone bill?

Universal Service Fees are mandated by the Federal Government and assessed under rules developed by the FCC to support universal service for schools, libraries, and rural health care facilities. It is calculated as a percentage of your total monthly long distance charges.

What is meant by excise tax?

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel.

What is the universal service fee on my phone bill?

Federal Universal Service Fund (USF) This surcharge keeps local phone service affordable for all Americans by providing discounts on services to schools, libraries, as well as those living in rural and high-cost areas and income eligible families.

What percentage is the federal universal service charge?

FEDERAL UNIVERSAL SERVICE FUND (FUSE) The Federal Universal Service Fund (FUSE) charge will equal the FUSE established by the FCC, as it changes from time to time. As of the last Guide publication date, the FUSE surcharge is equal to 20.1 percent of all the charges, excluding Taxes, appearing on a Customer's invoice.

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