T-Mobile to Cover Sales Tax on Smartphones With Prepaid MasterCard Promotion

by

T-Mobile USA today introduced a limited time promotion offering customers a prepaid MasterCard with a new smartphone purchase starting February 1. The card is worth 11.2% of the smartphone's retail price, which T-Mobile advertises as covering more than the sales taxes that a customer would pay.

tmobile-sales-tax
The deal is valid on every new smartphone that T-Mobile sells, including iPhones. Each smartphone must be activated with a T-Mobile ONE or Simple Choice Unlimited 4G LTE plan—up to 12 lines qualify for the deal. The prepaid MasterCard must be redeemed within 30 days and it will take 6-8 weeks to arrive.

Earlier this month, T-Mobile announced that the price of its T-Mobile ONE plan now includes sales taxes and all other additional charges. In other words, the price you see is the price you pay—that's $70 for the first line, $50 for the second line, and $20 for each additional line. AutoPay is required.

The carrier also launched a "Tax Rebate" promotion earlier this month. Every customer who switches to T-Mobile from another carrier will receive a $150 prepaid MasterCard, with no device trade-in required—up to 12 lines qualify for the deal. The promotion cannot be combined with Carrier Freedom.

Top Rated Comments

BeyondtheTech Avatar
52 months ago

There is a reason that T-Mobile continuously is releasing these promotions, smoke and mirrors, to make up for the poor service and outlying signals. With that being said T-Mobile has drastically increased their service and changed significantly for the better since 2010 and huge reason for that is due to John Legere. But at the same time it still is not even close to the level of service that you'll see at Verizon or AT&T. But with that being said they can always live behind the saying "At least we're not sprint".

Yet another person who's still reveling and rehashing the old and outdated 'T-Mobile has horrible service' perception. As an enterprise mobility support specialist, I have to play with all devices and all carriers, and I can tell you 'not even close to the level of service' is about as inaccurate as you can get. And for what the average person paying to Verizon or AT&T is 'not even close to the level of savings' you'd get with T-Mobile.
Score: 2 Votes (Like | Disagree)
iceknyght Avatar
52 months ago

We just recently moved to Denver, CO with AT&T and noticed the call quality dropped (lots of dropped calls) and data is always hit or miss.

So we switched to T-mobile. Seems like the third party stores are better to work with than the corporate stores. We got $150 per line we switched over and the no taxes starting in February. They also waived the $20 activation fees for both lines and gave us 10% off on our new phone cases. Since the jump plan is gone we just bought our 7 and 7 plus outright. We probably won't upgrade for another 2-3 years. We opted out of the $12 insurance a month plan from T-mobile, but we did purchase Apple Care for both phones.

After two weeks of usage I can say I'm blown away by the way T-mobile performs. T-mobile so far has better coverage and voice quality than AT&T.
Data performance just blows away our old AT&T data plan.

Our plan is the One plan that is $120 for two lines.
Unlimited data, calls and texting.
Wifi calling and hotspots.

I would say maybe only Verizon is better here in coverage, but not by much.

In our apartment we got:

AT&T = 1 bar
T-mobile = 2-3 bars (bounces back and forth)
Verizon = 3 bars

Yep, same here! We're just south of Denver and switched from AT&T to T-Mobile when the iPhone 6s came out and our service has been better with T-Mobile, by far! Plus, our house doesn't get service very well from any of the carriers, so having the wifi calling has been a Godsend! And data when we're out and about (especially in heavier populated areas) is MUCH faster... Their billing is a bit weird (the way they add their credits), but other than that, I can't complain!
Score: 2 Votes (Like | Disagree)
TheShadowKnows! Avatar
52 months ago
I am inmune to these sleights of marketing. I am a T-Mobile pre-paid customer. But by keeping it simple, I roll-in the financial rewards:
[LIST=1]
* Buy the iPhone cash-and-carry, unlocked. Bought the iPhone SE and love it.
* Enrolled with T-Mobile's monthly prepaid with 5G LTE "unlimited" data + unlimited text + 100minutes voice+WiFi calling (never use voice calling). (This is the so-called "Walmart" T-Mobile plan, although I have never, ever set foot physically or digitally on a Walmart site.)
* Includes personal hotspot + data maximizer (free 480p video) + free music streaming
* Buy the monthly refresh at Target, digitally using my REDcard, with 5% off, no taxes, no fees = $30-month - 5% (My state + federal taxes and fees, which I avoid, would add more than 18% to the bill. Precisely, state=11.70% + federal=6.64% total=18.34%)
* I set my iPhone Reminders app to alarm me pair of days before the refresh is due, which is 30 days thereafter the payment, modulo a weekend.

Unless one has a family of four or more, I usually find these specials useless. But that is my use case.

And the T-Mobile service in the my region where I live has proven to be good, and great sometimes. But, this is key to me, the savings keep on coming monthly.
Score: 2 Votes (Like | Disagree)
BeyondtheTech Avatar
52 months ago

It's hard to keep up with all the promos and changes T-Mobile has. If I am currently under contract with Verizon, what can/can't I do right now to get the best deal? Use the carrier freedom promo to pay off my ETF, and then get a new phone and take advantage of this 11.2% rebate? Or does one cancel the other out?

Are your devices paid off with Verizon?

If I'm not mistaken, Carrier Freedom used to be separated into two parts - up to $350 per line to pay for the ETF of a ported line, and up to $300 or more for a trade-in of a device. People used to keep their old iPhones, and they'd get $350 after switching, to which they'd usually get more cash by selling their iPhone locally, or unlocking and using it with T-Mobile.

It seems like you could do Carrier Freedom + this 11.2% card deal.

And if I'm reading the details of Carrier Freedom now, it's up to $650 or more, but it requires a trade-in and a purchase or financing of a new device. And since the purchase is done at the time of switching, you cannot use the new Tax Freedom promotion with it.

In essence, this may be for straight-up new subscribers (i.e. expanding a family plan), or people who are off contract with their current carriers and don't have ETFs that would need to be paid off.

Limited time offer; subject to change. Eligible device trade-in, new device purchase, qualifying credit, port-in from eligible carriers, and qualifying service required. Pay-off your device requires trade-in of financed/leased device in good condition; your payments must be current. Payments consist of: (1) credit of device trade-in value, and (2) Prepaid MasterCard® Card in amount of carrier’s Early Termination Fee (for ETF offer) or remaining device balance, including lease purchase option if applicable, minus trade-in credit (for device offer) (card not redeemable for cash and expires in 12 months unless extended by Issuer). Sales tax on ETF/device excluded. You must submit final bill showing ETF or device balance (& valid exercise of lease purchase option, if applicable) within 2 calendar months of port-in and be active and in good standing with T-Mobile when payment is processed; allow up to 8 weeks. Additional validation may be required. Up to 12 lines; all lines must be activated in same T-Mobile market with same billing address. One offer per subscriber. Excludes iPhone7 trade-up offer. Check your contract(s) with your carrier for your rights and obligations. T-Mobile Prepaid MasterCard® Card is rebate/reimbursement or exchange on new device, service, or port-in (maximum $350 per individual for ETF); for any tax implications of payment, consult a tax advisor. No money has been paid by you for the card. Cards are issued by Citibank, N.A. pursuant to a license from MasterCard International and managed by Citi Prepaid Services. This card can be used everywhere MasterCard debit cards are accepted.

Score: 1 Votes (Like | Disagree)
BeyondtheTech Avatar
52 months ago

For anyone trying this, good luck getting T-Mobile to actually follow through on their promotion. I'm still having to call them every couple of weeks to get them to give me the monthly discount I'm supposed to be receiving for trading in my iPhone 6s Plus last September. Every time I call, it takes 40-45 minutes and they promise they'l fix it, but they never do.

I wish I could sue the crap out of them. Instead, I'm leaving them as soon as this phone is paid off.

Solution: Stop calling and use @TMobileHelp on Twitter. They are miles ahead of Customer Care, everything is easily logged and referenced, and they seem to have more power or ability than Customer Care, only to be limited by what Executive Relations can do (which is just about everything else).
Score: 1 Votes (Like | Disagree)

Top Stories

cook cbs this morning

CBS This Morning: Apple to Make 'Big Announcement' Tomorrow Morning

Tuesday January 12, 2021 8:46 am PST by
CBS This Morning today shared a short clip of an upcoming interview with Apple CEO Tim Cook in which addressing last week's events at the U.S. Capitol, with Cook saying "it's key that people be held accountable for it." Following the clip, Gayle King of CBS noted that the interview with Cook was not specifically arranged to address the current controversy over Parler and other repercussions, ...
ipad pro 2021 mysmartprice cad

Allegedly Leaked 2021 iPad Pro CAD Images Suggest Few Design Changes

Tuesday January 12, 2021 3:38 am PST by
Tech blogs 91mobile and MySmartPrice on Tuesday posted a series of allegedly leaked factory CAD images of Apple's upcoming fifth-generation 11-inch iPad Pro. Rumors suggest Apple plans to announce two new iPad Pro models in both 11-inch and 12.9-inch versions, and today's images offer perhaps the clearest indication yet that Apple's next-generation iPad Pros will have minimal, if any,...
prototype iphone 12 pro

Prototype iPhone 12 Pro Shown Off in Photos

Wednesday January 13, 2021 3:39 pm PST by
Developer Giulio Zompetti, who often shows off prototype versions of Apple devices, today highlighted a prototype version of the iPhone 12 Pro. The iPhone 12 Pro is running an operating system called SwitchBoard, a nonUI version of the iOS 14 update that Apple uses internally. We've seen SwitchBoard on prototype devices before, as Apple uses it to test new features. Zompetti's prototype...
find my app safari post

Safari Allows Users to Enable Hidden 'Items' Tab in 'Find My' App Ahead of AirTags Launch

Wednesday January 13, 2021 5:45 am PST by
As seen in screenshots obtained by MacRumors in 2019, Apple's long-rumored AirTags items trackers are expected to be managed through the Find My app on iPhone, iPad, and Mac. Now, any user can get an early look at this tab. MacRumors reader David Chu today alerted us that the hidden "Items" tab in the Find My app can be enabled on an iPhone or iPad by typing in the link findmy://items in...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
mac anti reflective coating issue

Apple's Anti-Reflective Coating Repair Program Still in Effect for Some MacBooks With New Mail-In Policy

Tuesday January 12, 2021 10:07 am PST by
In an internal memo obtained by MacRumors, Apple recently informed its network of Apple Authorized Service Providers that mail-in repair is now required for Mac notebooks with anti-reflective coating issues in the United States. The new policy went into effect January 4, 2021 and means that customers who take an eligible 12-inch MacBook or MacBook Pro exhibiting this issue to an Apple...
pioneer carplay wc5700nex

The Best Apple-Related Accessories at CES 2021

Wednesday January 13, 2021 1:16 pm PST by
CES 2021 is taking place digitally this year, and it hasn't been as exciting as in past years because many vendors have opted out. That said, some companies are still showing off some interesting Apple-related accessories that are coming out this year and that will be of interest to Mac, iPad, and iPhone users. Subscribe to the MacRumors YouTube channel for more videos. Pioneer Wireless...
Hue module dimmer switch

Philips Hue Announces New Wall Switch Module, Dimmer Switch, and Outdoor Light Bar

Thursday January 14, 2021 3:11 am PST by
Philips Hue has announced a new wireless dimmer switch module that lets Hue bridge owners directly control the smart lighting from their standard wall switches. The new Philips Hue wall switch module is the ideal addition to any Philips Hue set up. Installed behind existing light switches, it allows users to turn their existing switch into a smart switch and ensures their smart lighting is...
whatsapp wallpapers 1

WhatsApp Affirms User Privacy Following Backlash Over Data Sharing With Facebook

Tuesday January 12, 2021 6:39 am PST by
Following backlash after changing its terms and privacy policy to consolidate a significant amount of data sharing with Facebook, WhatsApp is now assuring users about the privacy measures built into its app. Last week, WhatsApp began informing users of updates to the app's terms of service and privacy policy. The updated agreements, which users must consent to in order to continue using...
apple racial equity justice initiative propel center render 01132021

Apple Launches New Nationwide Racial Equity and Justice Initiative Projects

Wednesday January 13, 2021 4:08 am PST by
Apple today announced a set of new projects as part of its $100 million Racial Equity and Justice Initiative (REJI) to help dismantle systemic barriers to opportunity and combat injustices faced by communities of color. Rendering of the Propel Center The projects include the Propel Center, a global innovation and learning hub for Historically Black Colleges and Universities (HBCUs), an Apple ...