Tag Archives: What is a Low Mileage Vehicle? Suspended/Exempt vehicles to report on Form 2290

When do you use the low mileage credit?

Truckers, in this post, we’ll go through how to get a refund on your vehicle if you discover that you haven’t driven it over the desired mileage cap for exemption. The mileage cap for exemption, according to the Internal Revenue Service, stands at 5000 miles for commercial vehicles and 7500 miles for farming and logging vehicles.

The Heavy Highway Vehicle Used Tax Return HVUT Form 2290 is an annual tax charged to the Internal Revenue Service on vehicles with gross weights of over 55000 lbs and that is used for the same purpose every year. Form 2290 is due in June and is payable through the end of August.

Since Form 2290 must be filed upfront for the next 12 months, one must be certain of the miles the truck will be used. If the truck will be used within the exemption mileage, you will not have to pay any taxes to the IRS. We must only pay the IRS the tax due sum if we surpass the desired mileage cap of exemption. But what if you declare your truck as a taxable vehicle by mistake and pay the tax due, only to discover later that you have not driven up to the mileage limit? This is when you use the IRS’s low-mileage credit option, in which you use the IRS’s e-file Form 8849 schedule-6 to request a mileage refund and register the vehicle under low-mileage credits. This, though, can only be done after the existing tax year has finished and the new tax year has started.

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Low Mileage Vehicle Credit or Suspended/Exempt Category? Explained!

Hello there Truckers, doesn’t this question sound familiar to you? Almost on a daily basis, we receive calls as such inquiring about How do I/where do I report my truck that is not used above the desired mileage for exemption? The common misconception that evolves amongst many HVUT e-filers is that both these terms sound similar. However in terms of Form 2290 they are different attributes.

While e-filing your HVUT Form 2290, you might have noticed the section, Suspended/Exempt vehicles this section is basically to report when the heavy vehicle is been used under the desired mileage limit for exemption (5000 miles for Commercial & Logging based Units) & (7500 miles for Agricultural based Units) In this case, you need not make any tax payments to the IRS as they are exempt but you still got to report the vehicle on this Form to legally claim an exemption.

On the other hand, The Term Low mileage vehicle credits sounds to be referring to low mileage or exempt vehicles, but in reality it’s related to Claiming a refund on the Taxes paid full in advance on a low mileage vehicle. Upon realization of the mileage recorded by the end of the tax period for which the tax payment was made full in advance, you claim a full refund back from the IRS during the renewal of the following tax year’s tax return.

Sounds confusing? Well here’s an example: John purchased a commercial utility vehicle in July 2018 and he needs to get his vehicles registered with the state authorities so does he needs to file a Form 2290 report. So he reported the vehicle on the Form 2290 (For the period beginning July 1st, 2018 through June 30th, 2019) and made an upfront tax payment to the IRS. However, due to unforeseen mechanical wear & tear unfortunately the truck was not used quite actively as he expected hence it recorded an overall mileage that is less than/below the actual mileage limit for exemption as (5000 miles)

Now, he’s got to renew his Form 2290 for the upcoming period (For the period beginning July 1st, 2019 through June 30th, 2020. During this time, he’s got a chance to claim a full refund on the tax paid for past tax year on the renewal form so evidently the tax due amount will be nullified on the renewal form. On the other hand, If John does not seem to own any trucks during the next renewal, he can simply claim a full refund (Form of cash) by filing the Form 8849 Schedule 6 ( Claim for refund of excise taxes) and wait until 21 business days to receive a refund check back in his mailing address.

Economically E-File your HVUT Form 2290 via www.truckdues.com and receive the IRS digital watermarked copy of Schedule 1 back in your e-mail instantly. Reach us back for any further assistance over the following mediums:

Phone: (347) 515-2290 [Monday through Friday, 9 A.M to 5 P.M, Central Standard Time]

E-mail: support@truckdues.com

Live chat with our tax representatives.

Have a Good One! See you over the next article.