Step 2 – Your Fuel Receipts
- Add up the total number of gallons of fuel you have purchased (while you’re at it, jot down how much fuel tax you paid in each state – more on this in later)
- Add up the total number of miles traveled across all states.
- Divide the total number of gallons of fuel by the total number of miles.
What is IFTA tax?
- The International Fuel Tax Agreement — also known as IFTA — is a fuel tax collection and sharing agreement for the redistribution of fuel taxes paid by interstate commercial carriers.
How do I track my IFTA miles?
How do i track my IFTA miles?
- Keep a notebook and write the odometer when you cross state borders.
- Use a GPS or other device that records state by state miles per quarter.
- Use routing software that tracks state miles.
How much is IFTA?
If the proposed legislation passes, the IFTA reg fee will be based on the number of vehicles: 1 vehicle, $25.00; 2 – 4 vehicles, $100.00; 5 – 9 vehicles, $200.00; 10 – 24 vehicles, $400.00; 25 – 49 vehicles, $750.00; 50+ vehicles, $1,500.00. The decal fee for the larger companies is $25.00 per set decals.
How does IFTA tax work?
Taxes are paid at the pump and dispersed to each state. The taxes are distributed based on the miles driven in each state. If you purchase fuel in a state with a low fuel tax rate and drive in a state with a high fuel tax rate, you will most likely owe taxes at the end of the quarter.
What are non taxable miles for IFTA?
What are Non-Taxable Miles? Non-Taxable Miles are miles travelled that are not subject to motor fuel taxes (IFTA). Each jurisdiction has its own unique definition of non-taxable mileage or exemptions. In other words, your Non-Taxable miles are those miles that fall under any of the IFTA jurisdictions’ exemptions.
What is IFTA odometer?
IFTA Reporting allows you to view and download the state-by-state mileage of each vehicle, based on odometer readings from the vehicles themselves. With the IFTA Reporting feature, companies can streamline the process to prepare IFTA documents, and get rid of cumbersome trip sheets.
How do you figure out fuel surcharge?
To use the formula to calculate your fuel surcharge, subtract your fuel threshold amount from the actual price per gallon and divide that amount by vehicle’s miles per gallon. This gives you your per-mile surcharge amount.
Are IFTA taxes deductible?
You also face fuel and mileage taxes under the International Fuel Tax Agreement (IFTA). If you’re leased to a carrier, the company might handle the payments. Especially important are expenses you incur running your business. If it’s work related, chances are it’s deductible according to the Internal Revenue Service.
What is the fine for not having an IFTA sticker?
Note once you have an IFTA sticker on your vehicle, you must file quarterly reports, even if you did not operate your vehicle out of your home state. There are penalties, including a $50.00 fine, for not filing the quarterly report.
How much does IFTA cost in Texas?
There is no fee for the Texas IFTA license and decals. Once the application is received, if any additional information is needed you will be contacted by phone, so be sure to provide a phone number where you can be reached. It will take 3-4 weeks to receive your license and decals in the mail.
What is considered taxable miles on IFTA?
Taxable miles are the miles used to calculate your taxable gallons. When completing your tax report, apply any overpayment in one jurisdiction to the taxes owed in another jurisdiction. If taxes owed are more than any overpayments, send one check for the net tax owed.
How do you calculate taxable gallons?
Calculating taxes owed for each state and province This is dependent on the applicable rates during the current IFTA quarter.
What is laden taxable Miles?
Laden miles are those traveled by a vehicle with a load or any part of a load. Methods for computing highway use tax. When you file your first return for the calendar year, you must choose one of the following methods to compute your tax: •