How to Calculate your IFTA Fuel Tax Report?
IFTA is a Cooperative agreement that is held between 48 states in the USA and ten other provinces in Canada. The IFTA allows inter-jurisdictional carriers in order to report and further pay for the taxes for the fuel required by their vehicles in order to run across the state. The carriers can utilize a single fuel tax license throughout their journey.
Prior to the IFTA Trucking rules, Truckers were required to secure fuel permits from every state that they would enter. This process was don’t think for the trackers as they had to spend additional costs and further it also consumed a lot of time.
If you want to file for IFTA, you will be required to figure out the fuel tax report for your vehicle.
Here is how you can figure out the IFTA tax calculation for your vehicle:
- Track miles of each state
All the truckers and drivers must constantly work together in order to accurately record the total amount of fuel consumed by the tracker over different jurisdictions. This will require for the fleets to be extremely organized in the process of how they take care of the drivers’ records and duty status.
The Truckers are also required to do their part and diligently record their perfect odometer readings whenever they are crossing any particular state line. This will help you track your Highway Use Tax.
- Add fuel purchase
Another important piece of information that you are required for your IFTA fuel tax is to constantly report the total gallon of fuel that you purchase and each jurisdiction. The truckers are required to keep the original receipts or invoices in order to prove the fuel tax was paid.
- Calculate fuel consumed in each state.
You will be required to note down and calculate the fuel mileage for your truck in each particular jurisdiction. Further, you will also be required to note down the Highway Use Tax of your vehicle.
- Calculate taxes owed in all states.
The fuel that has been purchased in every different jurisdiction is the key metric that is required to calculate the fuel Tax amount your vehicle owes in each particular jurisdiction. Further, you will also be able to view the complete chart of fuel taxes for each particular fuel type in different jurisdictions under the IFTA regulations.
Are you aware of the IFTA Trucking? If you are a chuckle and you want to make your life easier, it is important that you learn about IFTA. This will help you with your paperwork and further help you to lessen your headache. Studies through the above article to help you learn how to figure out your IFTA tax calculation.
Brian Styris is the author of this article. For more details about Trucking Compliance Services please visit our website: etrucks.com