Category: Credit Form 8849

Form 2290 Essentials for Buying or Selling a Truck

Posted on September 23, 2022 by - Buying Trucks, Claim your Tax credit, Credit Form 8849, selling

Form 2290 must be filed by drivers of vehicles weighing 55,000 pounds or more for the Heavy Vehicle Use Tax. Typically if you are the owner of that vehicle you will be the one that files for it. What happens when a truck of this weight is bought or sold in terms of filing Form 2290?

When buying a vehicle of a qualifying weight the ownership of that vehicle is transferred to you. Now you have to pay the Heavy Vehicle Use Tax for that vehicle and File Form 2290. How much tax you owe depends on the weight of the vehicle you purchase, when you plan to put it on the road, and how much you plan to drive it. 

Form 2290 is due on August 31st because the tax year for the Heavy Vehicle Use Tax goes from July 1st to June 30th of the following year. The month that you put your vehicle on the road for the first time is the first used month. If you put the vehicle on the road in the middle of the tax year, you will owe the tax amount for the months remaining in that year. 

If you sell a vehicle of a qualifying weight, the process is a little different, especially if you have already paid the Heavy Vehicle Use Tax for this vehicle for the year. If you plan to purchase a new vehicle or already have another vehicle, the next time you file you are able to claim a sold vehicle credit on that vehicle. This will reduce the amount of taxes you owe on this vehicle. 

If you do not plan to purchase another vehicle or don’t have another one, you are able to file a Form 8849 which is designed to request a refund for the tax amount for the months that you no longer owned the vehicle. You are also able to file one if you still have or are planning to buy another vehicle, though Form 8849 is processed manually so it can take up to a year to be processed. 

If you are buying or selling a vehicle, ExpressTruckTax makes filing Form 2290 easy. You can file Form 2290 and specify the First Used Month after you purchase a new vehicle now that you have ownership of it. ExpressTruckTax also makes claiming credits on sold vehicles a breeze. Simply file for your new or current vehicle and then specify that you are claiming a credit on the sold one. You will put in the details of the sale, who you sold the vehicle to, their information, and the date of the sale. ExpressTruckTax also makes filing Form 8849 easy too though you have to specify all of the information regarding the sale including who you sold the vehicle to, their information, the date of sale, and provide the bill of sale.

To make your filing experience fast and easy, choose ExpressTruckTax! The entire process only takes a few minutes and can be completed from any device to make it as convenient as possible. What are you waiting for? File with ExpressTruckTax today!

Everything You Need To Know About Claiming Credits On Form 2290

Posted on July 22, 2022 by - 2290 credit, Claim your Tax credit, Credit Form 8849, credit vehicle, Credit vehicles, form 2290 credit vehicle

Do you drive a vehicle weighing 55,000 pounds or more? If you answered yes, you need to file Form 2290 for the Heavy Vehicle Use Tax. If you drive this vehicle less than 5,000 miles a year, or less than 7,500 miles a year if it is used for agricultural purposes, then you must still file Form 2290 but no tax will be owed for this vehicle. In this case, the IRS considers the vehicle suspended because it did not exceed the mileage limit. 

IRS 2290 Form is filed a year in advance, so what happens if you file a vehicle as not suspended, paid the tax but don’t exceed the mileage limit after all? You can claim a credit for this vehicle next time you file Form 2290. 

Claiming credits on form 2290

When filing Form 2290 you need to first file for a truck that you are not claiming credits for, whether it is suspended or not. After entering this vehicle’s information, there will be a section where you are able to claim credits for vehicles. The information needed when reporting these vehicles includes the vehicle’s VIN (Vehicle Identification Number), the vehicle’s make, model, and a detailed description of why you are claiming the credit for this vehicle. 

Other situations where credits need to be filed

Not exceeding the mileage limit is not the only reason that you might need to claim a credit when filing Form 2290. When you sell a vehicle after already having filed Form 2290 and paid the HVUT for it, you will need to claim a credit for it. When entering the information about this credit vehicle in Form 2290 you will enter the vehicle’s information but also details about the sale including the date it was sold and the buyer’s information. This way the IRS knows when you are no longer in possession of the vehicle and how much tax credit needs to be returned.

Another instance where you would need to claim a vehicle credit on Form 2290 is if a vehicle was stolen or destroyed. For these situations, you need to be very detailed in your description of the event and specify when it was stolen or destroyed so that the IRS knows how much tax credit needs to be returned. 

Other options for claiming credits

When you need to claim credits for a vehicle, filing it on your Form 2290 is not your only option. Instead of claiming the credits on Form 2290, you can file Form 8849 Schedule 6. This form is designed only to claim credits on vehicles that meet the requirements. When filing this form, all you need to do is enter the information about the credit vehicle including a detailed description of why you are filing this form for this vehicle. It is recommended that Form 8849 is filed when you no longer have a truck to file Form 2290 to add the credits onto. This is because Form 8849 takes longer to process because the forms are processed manually. In some cases, it can take up to a year or more to get your credit back. If you do still have a truck to file Form 2290, wait until the next time you file and add these credit vehicles to your form instead of having to wait and the credits will be processed at the same time as your Form 2290.

ExpressTruckTax is here to help you claim credits

ExpressTruckTax makes claiming credits when filing Form 2290 easy. When trying to claim credits it is important to keep in mind that clients have three years from the date the return was filed or two years from the date the tax was paid, whichever is later, to file a claim a credit. As long as the credit you need to claim fits into this time frame, ExpressTruckTax can help you claim your credits on your 2290 IRS Form or help you File Form 8849 if needed. No matter how you need to file or report your vehicle credits, ExpressTruckTax offers you the best and most convenient solution. What are you waiting for? File with ExpressTruckTax today and start reporting your vehicle credits today!

HVUT Credits: Selling & Purchasing Vehicles

Posted on January 20, 2016 by - 2290 credit, applying a credit, Credit Form 8849, credit vehicle, E-file HVUT, Form 8849, HVUT, hvut credit, new vehicle, purchasing, selling

We’re a few weeks into 2016, and by this point you might have grown your fleet with a used (or new to you) truck. Or maybe you’re an Owner-Operator who is replacing an old vehicle. I mean, it looks like some sleeper trucks are just getting cheaper and cheaper. While you’re excited to be on the road in the new rig, it’s vital that you have your HVUT accounted for. With ExpressTruckTax, adding a credit for sold vehicles to your 2290 is easy.

How Do HVUT Credits Work?

When a vehicle is purchased from another owner who already paid their HVUT fees, the vehicle is covered until the end of the month of purchase. From the first day of the following month, it’s up to the new owner to pay the vehicle’s HVUT from the first day of that month to the end of the tax year.

With that said, it’s important to understand that the heavy vehicle use taxes DO NOT transfer from one owner to another. You’re required to file a Form 2290 and pay taxes on any qualifying taxable vehicle. The taxes also don’t transfer from your old vehicle to your new one! So if you sold your old truck after buying a new one, it’s the same process (just with the roles reversed). It’s annoying, sure, but you still have to do it.

Basically, the seller gets credited for the taxes they paid before they sold the vehicle, and the buyer owes the difference. And if you’re a seller, there are two ways to approach the credit. You can get the credit for the tax paid on your next Form 2290 filed or the refund can be claimed through Form 8849, if you don’t want to wait until the tax period ends.

Why don’t we just see how it’s done real quick?

What Are the Tax Implications When Buying or Selling a Suspended Vehicle?

Well, suspended vehicles come with a specific set of tax implications regarding their sale. If you sell a vehicle under suspension, you need to provide the following information:

  • Your name, address, and EIN,
  • VIN Number,
  • Date of the sale,
  • Odometer reading at the beginning of the period,
  • Odometer reading at the time of sale, and
  • Buyer’s name, address, and EIN.

If everything is reported like above and the use of the vehicle exceeds the mileage use limit for the period after the purchase (including highway mileage recorded by the former owner), the new owner would be liable for the tax on the vehicle. If the former owner didn’t provide the required statement to the new owner, then the former owner would be held liable for that tax period.

With your new rig ready for the road, you can get back out there to the long haul. Don’t forget, after you pay your HVUT for this tax period, you’ll still be liable to pay for the new period that starts July 1st, 2016!

If you run into any questions about credits on ExpressTruckTax, our US-based bilingual support team is available through phone, email, and even live chat. Reach us by phone at 704.234.6005, or by email at support@expresstrucktax.com.

IRS Form 8849-Claim for Refund of Excise Taxes

Posted on August 14, 2012 by - Claim Form 8849, Claim your Tax credit, Credit Form 8849, e-file 2290, Form 2290, Form 8849, irs 2290, IRS 8849, Schedule 6, truck tax 2290

If you sell a vehicle after you have filed your Form 2290 Return, you would need to file Form 8849, Schedule 6 in order to claim your credit.  

You would also use Form 8849 if your vehicle was stolen, destroyed or for any vehicle on which the tax was paid on Form 2290 if the vehicle was used 5,000 miles or less on public highways (7,500 or less for agricultural vehicles) during the tax period (July 1–June 30).

With ExpressTruckTax, filing your Form 8849 is quick and easy. Just create an account or log in if you already have an account and choose the option Form 8849 and follow the steps. We can automatically generate a Form 8849 or even apply a credit directly to any taxes due during the current tax period when using ExpressTruckTax.com.
For more information or to get started today, visit ExpressTruckTax.com. If you have any questions, contact our friendly US based customer support center in Rock Hill, SC at 704-234-6005 or email us at support@ExpressTruckTax.com.