There are sometimes situations resulting in an “overpayment” of Heavy Vehicle Use Taxes, in which a credit is due. This can occur if your vehicle is stolen, destroyed or if the vehicle did not exceed 5,000 miles (7,500 miles for agricultural vehicles) during the tax period. Here we explain the process for claiming IRS Form 2290, Highway Heavy Vehicle Use Tax credit for the following scenarios:
- You can take credit for the vehicle if it was stolen, destroyed or sold before June 1 and not used during the remainder of the period, or
- Used during the prior period 5,000 miles or less (7,500 miles or less for agricultural vehicles).
A credit, lower tax, exemption, or refund is not allowed for an occasional light or decreased load or a discontinued or changed use of the vehicle. What that means is if you filed your Form 2290 at 80,000 lbs, but had occasions where you operated at a lower weight class, that will not qualify you for a credit. If you used your vehicle for only a portion of the tax year, you will qualify for the credit IF you did not exceed 5,000 miles (7,500 miles for agricultural vehicles). If you did travel more than 5,000 miles (7,500 miles for agricultural vehicles) then you will NOT qualify for the credit.
The credit for vehicles that were stolen, destroyed or sold during the tax year will be prorated based on the dates of the occurrence. For vehicles sold, destroyed or stolen, you must include the VIN, taxable gross weight, and date of sale, accident or theft. The credit for the tax paid can be claimed on the next Form 2290 filed or the refund can be claimed on Form 8849. You do not have to wait until the tax period ends.
The credit for low mileage vehicles you either qualify for it and you will get the full amount that you paid as a credit or you will not qualify and you will not get any portion of the credit. This credit is never prorated. For vehicles that tax was paid and the vehicles were used 5,000 miles or less (7,500 miles or less for agricultural vehicles), the credit (or refund) cannot be claimed until the end of the tax period for which the initial tax was paid. Even if you know at some point during the tax year that you will not exceed the 5,000 mile mark, you will not be able to claim the credit until the tax period ends, which is on June 30th.
The credit claimed cannot exceed the tax reported on IRS Form 2290. If this occurs, any excess credit must be claimed using Form 8849, Claim for Refund of Excise Taxes, and Schedule 6, Other Claims. When you use IRS Authorized E-File provider, ExpressTruckTax to E-File HVUT Form 2290, if your credit exceeds the tax due, our program will automatically generate the Form 8849 for you.
For more information or to get started today, visit ExpressTruckTax.com or contact our Express Tax Support Center in Rock Hill, SC at 704-234-6005 or email us at support@ExpressTruckTax.com. We have Spanish Support too!