The calendar is now rolled to the Deadline; it’s that time of year when you need to start preparing your Heavy Vehicle Use Tax (HVUT) return using IRS Tax Form 2290. This is an annual tax reported on heavy motor trucks operated on public highways. All truckers, truck owners, owner-operators, trucking companies who own and operate heavy motor vehicles with a gross weight of 55,000 pounds or more, estimated to drive 5,000 miles or more on public highways must file IRS Form 2290 and pay the annual federal excise tax in full.
Whether you’re a private, for-hire, or specialized carrier, you can electronically prepare and report Federal Form 2290 tax requirements at TruckDues.com. While reporting 2290 tax, you could adjust the sold or traded vehicle credits and low mileage credits on vehicles from previous tax years. For a vehicle destroyed, stolen or sold before June 1, a credit for tax paid can be claimed on the next Form 2290 or a refund of the tax paid can be claimed on form 8849 schedule -6.
Now talking about 8849 schedule-6 (refund form) People often confuse between Low mileage vehicle credits and suspended vehicle or exempt from tax. Well let’s see the basic difference shall we?
What’s a suspended or exempt from tax vehicle ?
Any truck which does less than 5000 miles in a tax year (7500 for an agricultural used vehicle) and exempt organizations such as NGO’s can report their trucks as exempt by listing them under the suspended category. The schedule-1 copy would list them under category “W” regardless of the weight category
So what’s a Low mileage vehicle credit?
Well lets assume you have paid the taxes in full for the year July 2020 – June 2021 expecting the truck to go more than 5000 miles but the vehicle has not done the miles as expected, The IRS give you a complete refund or you may claim credit and transfer it to the current year July 2021 – June 2022 by filing a 8849 schedule-6 form.
So when you report a vehicle that does less than 5000 miles / 7500 miles in a tax year report it under suspended category and not under low mileage vehicle credit. This option is only to claim credits/refund from the previous tax year but not to list under category “W”.
Hope this blog was beneficial and for further clarifications or assistance regarding to your form 2290 you may contact our support team at 347-515-2290 or you may simply drop us an email to firstname.lastname@example.org. Wondering if there is any other mode of live assistance, well yes you may chat with our representatives through chat by logging into www.truckdues.com. We are available from 9 A.M till 5.30 P.M CST and in weekends as well.