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mmohaqeqf's profile

Tutor

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5 Messages

Monday, September 14th, 2015 12:08 AM

Paying tax twice; why?

Hi;

I have a problem understanding how the taxes are appiled to my account. I am really disappointed with the online chat, since the agents are really not aaware of the tax laws.

I want to get an iphone 6 (64gig) with 30% downpayment (Next; 300MB).I select my device and my plan, and when I want to check out, the amount I should pay also includes the sale tax for the full retail price of the phone, which means that I am paying paying the sale tax for my phone. So far so good. But the problem is that the monthly tax is also applied to my entire monthly due, which is a sum of my phone installment and my monthly service charge.

Does it mean I am paying the sale tax for the phone twice?

thanks

Accepted Solution

Official Solution

ACE - Sage

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117.2K Messages

8 years ago

That is correct.  On the mobile share plan each line has fees and taxes.  I have 6 smartphone lines at $15 each, tax and fees about $5 each and about $2 on 2 tablets, total about $32 a month.

 

These are state, local and federal charges, ATT has no choice but to charge you.

 

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ACE - Sage

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117.2K Messages

9 years ago

Your installment payments are not taxed.

Tutor

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5 Messages

9 years ago

thanks for the reply.

Are you sure, cuz the agent told me that the monthly tax is applied to the entire monthly due (whic is a sum of monthly phone installment and monthly services).

So if I am paying for example 100 dollar each month (25 dollar for the phone and 75 dollar for the service), my monthly tax is only applied to this 75$?

Thanks

ACE - Sage

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117.2K Messages

9 years ago

On a 2 year contract plan, that would be true.  Not with Next installments.

Tax is only on the data plan and line fee.

Tutor

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5 Messages

9 years ago

Thanks;

I just wana make sure I understand correctly.

 

Question: In the Next plan, the monthly tax is only applied to the service, and not the smartphone installment?

 

Thanks again

Contributor

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1 Message

8 years ago

Can someone explain why I'm being charged taxes on both lines. I'm paying over $20 a month in taxes and others charges.

Employee

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3.5K Messages

8 years ago

No the installment amount is not taxed on the bill. Only the service has tax on your bill. It may appear as if everything is taxed but those are only based upon the service, not hardware. 🙂

Contributor

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1 Message

7 years ago

Hello,

 

I have a similar problem. I purchased an iPhone 7 (750$) from target last month. I was required to pay tax of 45$ (sales tax of 6%) upfront at the target store. I was told that I need to pay the installments of 25$ to ATT on a monthly basis. Now when its time for me to pay the first monthly bill after my purchase, I see that I'm being taxed 1.5$ as PA state sales tax. Note that I wasn't being charged this amount on any of the earlier bills and none of the other lines associated with my account are being charged this amount. There is a separate tax for the line and services and it duly says PA state sales tax -Telecom. I have no problem with the latter but the former (i.e PA state sales tax) is 6% of 25$ is for the phone. 1.5$ for a period of 30 months will result in 45$. I will be paying the tax  again for the phone! I spoke to an ATT representative who said that nothing can be done from ATT as this is being deducted as per state law. Could any of you please suggest/help me out here?

Here is the breakdown:

 

Government Fees and Taxes

19. 911 Service Fee 1.65

20. PA State Sales Tax 1.50

21. PA State Sales Tax - Telecom 1.46

Total Government Fees and Taxes 4.61

 

Thanks!

 

ACE - Sage

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117.2K Messages

7 years ago

@spookala   That's weird and kind of fishy too.  

Calculator:   https://www.wireless.att.com/cell-phone-service/additionalcharges/index.jsp?_requestid=14109

I suggest contacting advanced support here @ATTMobilityCare.   Let us know what happens it may be others are also overcharged.

There was a problem when the unlimited plan first started.

 

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