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Subject:  Phone tax credit on pay as you go phones? Date:  2/15/2007  2:44 PM
Author:  halite Number:  92194 of 132878

Any thoughts on the following situation?

My sons, 18 & 16 years old, each have their own Virgin Mobile pay-as-you-go phone. They buy a top-up card at any retailer for at least $20 every 90 days and pay a flat $0.18/min. for all local & long distance calls. If they want more minutes, they buy another top-up-card. No contracts, no monthly bills.

Is this considered a bundled service and therefore they are each eligible for the phone tax credit?

I checked the IRS Q&A's but they did not directly address this situation.


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