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How does the tab affect taxes?


Does the medium or large tab increase the tax you pay on your phone bill every month? If you put a new phone on the medium or large tab, does it reduce the amount of tax you pay upfront? (ie. If the phone is $600, and you get a $500 tab, do you pay $600 *.13 = $78 in tax, or $100 * .13 = $13 in tax?)
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Best answer by Philosoraptor 22 April 2014, 18:30

Any upfront fee is taxed. Any monthly tab fee is taxed. Your tab balance is not taxed, unless you choose to clear your tab early. For your example, you would pay $13 in tax. The $10 monthly tab fee is added to your monthly bill before taxes, and your bill is taxed after the fee. The Tab L option isn't usually the best overall value due to the $10/month fee. Tab M is frequently the most economical choice over 2 years.

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Any upfront fee is taxed. Any monthly tab fee is taxed. Your tab balance is not taxed, unless you choose to clear your tab early. For your example, you would pay $13 in tax. The $10 monthly tab fee is added to your monthly bill before taxes, and your bill is taxed after the fee. The Tab L option isn't usually the best overall value due to the $10/month fee. Tab M is frequently the most economical choice over 2 years.

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