T-Mobile is collecting double tax

[raju130000]

I love their new jump program however it doesn't make sense where we have to pay tax on the full phone then once you return the phone 6 months later and purchase a new phone we have to pay tax on the full phone again. It only makes sense that they credit a partial amount . Anybody else feels the same or has a workaround?

Posted via Android Central App

 

[zorak950]

It's probably a legal thing, but not really my field.

 

[Almeuit]

Technically you're buying the phone full price... When trading in T-Mobile is basically paying for the rest of the phone balance to let you upgrade to a new one... They make you pay the tax cost on that versus them paying it.

That's my understanding from it. They legally couldn't just charge more tax... They are simply making you pay the full tax since you're buying full price.. Trading in is just an option since you don't have to do it.

Sent from my T-Mobile Note 3 using AC Forums.

 

[dpham00]

Yeah, jump is a device payment plan. If you kept the phone for the full term then it is yours. If tmobile owns the phone and you rent it for a specific term then it is a different story.

Think of it this way, you buy a car on a payment plan, then a year later trade it in, then buy another car. You have to pay taxes on the original and new car.

dpham00, Android Central Moderator
Sent from my Verizon Samsung Galaxy Note 3

 

[raju130000]

Yeah, jump is a device payment plan. If you kept the phone for the full term then it is yours. If tmobile owns the phone and you rent it for a specific term then it is a different story.

Think of it this way, you buy a car on a payment plan, then a year later trade it in, then buy another car. You have to pay taxes on the original and new car.

dpham00, Android Central Moderator
Sent from my Verizon Samsung Galaxy Note 3

Actually we are not buying rather just leaving the phone just like when you lease a car you don't pay tax on the full amount you pay tax on your monthly payments.

Posted via Android Central App

 

[dpham00]

Actually we are not buying rather just leaving the phone just like when you lease a car you don't pay tax on the full amount you pay tax on your monthly payments.

Posted via Android Central App

Tmobile classifies eip as a purchase. Also in a lease, you do not own the device (or car) at the end of the lease, but have to return it. With the eip, after paying off the 2 year term, the phone is yours to keep. For those who choose to use jump, you can upgrade early by trading in your current device.

"The Equipment Installment Plan (EIP) is a payment option available for qualified new and existing customers on selected rate plans.

To find out if you're eligible for EIP, and what your down payment and monthly installments will be, log in to My T-Mobile and begin the upgrade process.

Qualified customers are eligible to purchase handsets by making a down payment at the time of activation or upgrade and agreeing to pay the remaining balance in a series of 24 installment payments that are added to your monthly billing statement. All customers who choose to use the EIP option are required to enter into a 24-month financing agreement signed at the time of the activation or upgrade. Although this 24-month financing agreement is required, you may choose to pay off your EIP balance at any time by making incremental additional payments or a single payment for the total balance."


https://t-mobile.jive-mobile.com/#jive-document?content=/api/core/v2/documents/1674
dpham00, Android Central Moderator
Sent from my Verizon Samsung Galaxy Note 3

 

[Almeuit]

Actually we are not buying rather just leaving the phone just like when you lease a car you don't pay tax on the full amount you pay tax on your monthly payments.

Posted via Android Central App

No the agreement is to pay in full... Make sure to read what you sign.

The jump program basically says after you pay half they will eat the cost for you.. To let you get a new phone..

You're signing to buy the phone in full.... Not leasing it.

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[Bigballer]

Still sounds cheaper to buy a used phone off craigslist every year....

 

[dpham00]

Still sounds cheaper to buy a used phone off craigslist every year....

No doubt. Even if you were to buy from Swappa, a s5 is around $500 now, s4 $300. So it is certainly cheaper. Keep in mind that you have to pay $10/mo for jump, plus half the cost of the phone on current jump plan . So you are essentially paying $450 for the phone if you upgrade yearly vs. $220-230 for buying used (factoring in Swappa fee plus shipping) .

But of course, you are not getting a new phone from an Authorized seller and you have sell the phone yourself. Jump costs more but is more convenient.

dpham00, Android Central Moderator
Sent from my Verizon Samsung Galaxy Note 3

 

[Flagz]

Not sure if its different in Jump 1.0 vs 2.0. Here's my side.

I'm currently on Jump 1.0 and I paid the full taxes on my first phone that has EIP (Lumia 925). I paid maybe $40ish in taxes. Now that I'm jumping to the LG G3, they're making me pay taxes on the LG G3; $45ish. That's it, they didn't ask me to pay anything to my Lumia 925, just only the taxes on the G3. Did you get yours done in store? Did you fight for it? I would say call and ask. That doesn't sound right and nowhere in the terms does it list that.

 

[boogas8]

I dont understand the confusion. When you finance the phone is marked as sold, so tax must be collected. So each phone you get you must pay the tax. You are buying a new phone when you jump.
Do you really think they would charge tax if they didn't have to? The only reason companies charge tax is because the government requires them to. They are not going to pay the tax gor people.

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