Utility Contributions On March 21st, in Ask TaxMama 203, Jack brought this idea to us. Well, Dottie Brewer of Biz-USA decided to research this. While she came up with some interesting material in some of the FCC rules, which may be a good basis for a class action suit, bottom line was this letter from IRS [edited for brevity]: "Your Question Was: I recently found out that there is a charge on my AT&T bill for a federal program called the Universal Service Fund (USF). I did some research and found out that the Universal Service Fund is a non-profit corporation. I am forced to make a contribution to this fund to help poor people have phone service. Does this mean that I can claim those charges on my phone bill as a deduction? Thank you. "The Answer To Your Question Is: Thank you for your inquiry regarding the deductibility of a Universal Service Fund charge on your AT&T bill. This charge is not deductible as a charitable contribution. A charitable contribution is a voluntary donation or gift to a qualified organization. [edited] ... if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution; nonprofit hospitals and medical research organizations; utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs; nonprofit volunteer fire companies; public parks and recreation facilities; and civil defense organizations. ====== So, unless we're prepared to bring a class action suit - don't take this as a deduction. (For Tax Pros, read next week's issue of Ask TaxMama Pro for more in-depth information.]