E-filing Form 8849: Refund for Excise Taxes

Alright, Trucking Nation. We talk a lot on this blog about paying taxes to the IRS.

Today, we’ll talk about the flipside– the IRS paying you!

That’s right, in some instances, you may claim a refund of your excise taxes by E-filing IRS Form 8849 with Schedule 6.

While this may sound like confusing mumbo-jumbo, ExpressTruckTax makes it super easy to E-file for a refund and get you your money back faster!

Before we talk about the how, let’s talk about the why. In what instances do you qualify for a refund of heavy vehicle use tax paid?

• Your heavy vehicle was sold, stolen, or destroyed before June 1st (the end of the HVUT tax year). In any of these events, the tax will be prorated based on the date of the qualifying event. And it’s your lucky day because ExpressTruckTax does all the pro-rating math for you!

• Your vehicle traveled too few miles during the tax year. If you traveled 5,000 miles or fewer on public highways during the tax year (7,500 if it’s an agricultural vehicle), then you qualify for a refund. This credit is not prorated; you simply receive a full refund of the taxes paid at the end of the tax year. (Yes, you have to wait until June 1st to E-file for this refund to prove that you did not hit the mileage limit after all.)
• You overpaid your heavy vehicle use tax by either: filing for the incorrect number of trucks, selecting the wrong first-used month on your Form 2290, or you chose an incorrect, higher category weight for the vehicle. Pro-rated refunds are issued in all three of these cases. (Note: Refunds for lower gross vehicle weight will only be issued if the vehicle remains in that lower category for the entire tax year. There are no partial refunds for temporary reduced weight.)

However, refunds will not be issued for these cases:

• You sometimes operate at a lower gross vehicle weight than initially reported. While occasional light or decreased loads might make you lose some weight (and save on gas mileage!), this does not warrant a refund of excise tax.
• You used the vehicle for only part of the year. How often you used the vehicle or how many months it was in use do not matter if you exceeded the 5,000 mile limit (7,500 for agriculture). Refunds will only be issued if the vehicle drove less than the mileage limit during the tax year. 

If you fit into scenarios 1 through 3 above, then you may E-file your refund OR wait until next year and get a credit on your next Form 2290. The choice is yours! Either way, it’s always nice to get a little credit.

If you elect to E-file your Form 8849, here’s a quick how-to:

• Once you’ve selected “Start a New Return,” choose start under “Form 8849 Schedule 6.” 
• Then enter your tax year month end, which is typically December (unless the fiscal year for your business differs from the norm). 
• First, upload any vehicles needing a sold/destroyed credit. You’ll need the VIN, first-used month, gross vehicle weight, and the date that the vehicle was sold, destroyed, or lost. Notice how the pro-rated tax is calculated for you, showing you a delightful sum of money the IRS owes you!
• Second, enter the VIN, gross vehicle weight, and first-used month for any low mileage credit vehicles. 
• Third, enter any overpayment credits by inputting the date of overpayment tax, VIN, the amount you are claiming back, and a short explanation for the IRS to review. 
• Finally, review your information, and check out how much the IRS will be putting back in your pocket!