If you are new to the trucking industry let us say congratulations!
There’s a lot to learn about how to manage all of the required trucking taxes and registration. Just for starters, you will need everything from Heavy Vehicle Use Tax, your IRP, and of course your IFTA quarterly fuel tax report. To help you get started here is what new truckers need to know about IFTA reporting.
What New Truckers Need To Know About IFTA Reporting
IFTA, or the International Fuel Tax Agreement, is an arrangement between 48 of the United States and 10 Canadian provinces to report fuel use by motor carriers that operate in more than one jurisdiction (state). The IFTA fuel tax redistributes fuel taxes equally among the jurisdictions.
To show you filed your IFTA return and pay the taxes owed by the deadline you will be issued an IFTA license and IFTA stickers. The license should be kept in your truck at all times and the IFTA stickers are displayed under your driver’s side window.
Vehicle Qualifications For IFTA Reporting
Your vehicle qualifies for IFTA reporting if it travels between more than one jurisdiction and:
Has two axles and a gross vehicle weight exceeding 26,000 pounds
Has two axles and a registered weight exceeding 26,000 pounds
Has a combination weight exceeding 26,000 pounds
Has three or more axles regardless of weight
IFTA Quarterly Fuel Tax Report Requirements
You are required to complete an IFTA report four times a year and file with your base jurisdiction (home state). Your base jurisdiction is where your qualifying vehicles are required to be registered and where your information is available in the event of an IFTA audit.
The total miles traveled per jurisdiction including taxable and nontaxable, IFTA and non-IFTA, and trip permit miles
The total gallons of fuel consumed in each jurisdiction including taxable and nontaxable, IFTA, and trip permit miles
The number of gallons of fuel purchased per jurisdiction
The tax paid on each gallon of fuel purchased per jurisdiction
And the current tax rate per jurisdiction
File With The Best IFTA Software Available
Our sister product, ExpressIFTA makes IFTA reporting simple. Their IFTA software for reporting includes innovative features that let you upload your IFTA fuel tax information at your own pace. Upload your trip information as you go or all at once with each quick entry screen. You can even upload your miles from your fuel card.
Don’t worry about handling any complicated calculation yourself, because ExpressIFTA will automatically calculate IFTA fuel tax rates for you. And all of your information will be kept in an easy-to-read report that can be easily printed and used to complete your return.