Category: Taxable Heavy Vehicle

Rev Up Your Savings: The Ultimate Guide to Heavy Vehicle Tax Deduction

Posted on July 24, 2023 by - Taxable Heavy Vehicle

As an owner-operator, it’s essential to consider all the tax implications of your truck, including heavy vehicle tax deductions. Understanding the ins and outs of tax deductions, benefits, and credits for your heavy vehicle can save you and your business considerable money.

From Section 179 Deductions and Bonus Depreciation to writing off maintenance and repair deductions, here’s everything you need to know about heavy vehicle tax deductions.

Tax Credits and Benefits for Heavy Vehicles and Equipment: Section 179

The Tax Cuts and Jobs Act (TCJA) of 2017 changed how depreciation can be deducted. With the new tax law, truck drivers now have two options for heavy vehicle tax deductions: Section 179 or Bonus Depreciation.

What’s the difference between Section 179 and Bonus Depreciation? Let’s explore the differences:

How does Section 179 work?

The Section 179 deduction is a small business tax deduction used for capital assets — typically vehicles and equipment. It lets you write off the entire cost of your item immediately instead of depreciating it over time.

For example, if you spent $50,000 on a piece of heavy equipment, you can write off the entire purchase price for the current tax year instead of deducting it for five years at $10,000 a year, for example.

The whole point of Section 179 is to encourage small business owners to make more expensive purchases and, in turn, help stimulate the economy.

Qualifying for Section 179

To qualify for Section 179, you must purchase your heavy vehicle or equipment and put it into service on the year you are filing for. This means if you bought your truck in late 2023 but didn’t start using it for your business until 2024, you’ll have to wait to claim the Section 179 deduction for your 2024 tax returns.

Other stipulations include the following:

  • The heavy vehicle must be purchased (not leased).
  • The vehicle can’t be bought from someone related to you. 
  • If using the vehicle for both personal and business use, you must use the vehicle for more than 50% of your business.

While Section 179 has a complicated set of exceptions for vehicles, non-personal heavy-weight vehicles intended for business are eligible for a full deduction. These vehicles include:

  • Semi-trucks, tractor-trailers, and dump trucks
  • Heavy construction equipment like forklifts
  • Vehicles with a fully enclosed compartment and no seating behind the driver’s seat (like a cargo van)
  • Vans that seat nine or more passengers (i.e., an airport shuttle)

To claim the Section 179 deduction on your tax returns, you must include a description of your heavy vehicle, its cost for business use, and the amount of Section 179 you’re claiming. This deduction is made on Part 1 of Form 4562.

Limits to Section 179

Section 179 has important limits, such as a cap to the total amount that can be written off. For example, in the 2022 tax year, you can expense up to $1,080,000 of eligible property. For 2023, this deduction limit will increase to $1,160,000.

There’s also a cap on the total amount of equipment that can be purchased. For 2022, this limit is $2,700,000. And for 2023, the cap is $2,890,000. This means the deduction begins to be reduced on a dollar-for-dollar basis after the total amount is spent.

You also can’t deduct more money than you make in a year. So, if you have a net income of $100,000 (before taking the Section 179 deduction into consideration) and you purchased $110,000 worth of deductible property, your deduction will be limited to $100,000.

At this point, you can take regular depreciation on the remainder of your assets.

Tax Credits and Benefits for Heavy Vehicles and Equipment: Bonus Depreciation

Bonus Depreciation is usually taken after the cap for the Section 179 deduction is met. Available for new and used vehicles and equipment, bonus depreciation lets you write off an additional first-year depreciation on eligible property.

After the TCJA was passed, the potential value of Bonus Depreciation increased significantly — but only for a limited time. The Bonus Depreciation rate was expanded to 100% for qualified property in service through 2022. After that, the amount dropped by 20% for 2023 and will continue to drop at 20% until 2027, when the program will close.

That means the Bonus Depreciation rate is 80% for 2023, 60% for 2024, and so on, until 2027, unless Congress extends it.

What’s the Difference Between Section 179 and Bonus Depreciation?

While both Section 179 and Bonus Depreciation allow for serious deductions for a heavy vehicle in service, they also differ in the following ways:

  • The Section 179 deduction is capped by the IRS ($1,160,000 in 2023) and is reduced by the dollar amount if it exceeds the IRS threshold ($2,890,000 in 2023). However, there is no annual deduction limit for Bonus Depreciation.
  • Section 179 is typically more flexible than Bonus Depreciation. With Section 179 depreciation, you can deduct any amount you want as long as it’s within the IRS threshold set that year. You can also allocate which assets/vehicles get the deduction. Bonus Depreciation, however, requires that you write off all vehicles and take the entire tax break at once. You don’t get to pick and choose which assets/vehicles you want to deduct.
  • Section 179 is limited to the amount of taxable income, but Bonus Depreciation can exceed taxable income and create a net loss to be carried forward.
  • While qualifications, deduction limits, and investment limits change yearly, Section 179 is an indefinite part of the IRS tax code. Bonus Depreciation, on the other hand, is set to end on Dec. 31, 2026.

Keeping records for Section 179 deductions and Bonus Depreciation

You must keep detailed records of your vehicle usage — like mileage logs, receipts, invoices, etc. — to qualify for the Section 179 deduction or Bonus Depreciation.

These records will back up your business use claims of your vehicles in the event you’re ever audited by the IRS.

Claiming Heavy Vehicle Tax Deduction: Maintenance and Repair Expenses

Since your truck is not a personal-use vehicle, you can deduct all the expenses you’ve made to maintain or repair it throughout the tax year. For example, you can make deductions for the following costs:

  • Oil changes 
  • Regular checkups
  • New tires
  • Routine and emergency maintenance
  • Truck parts
  • Cleaning supplies
  • Loan interest (if you financed the purchase of your truck and trailer) 

The deductions for the maintenance and repair of your vehicle will be made on your Schedule C, which you will file along with Form 1040 in April every year.

Other vehicle maintenance deductions for Schedule C

In addition to the costs it takes to maintain and repair your truck, you’ll also come across other vehicle-related expenses that you can deduct from your Schedule C, including the following:

  • Load-related tools – Deduct any equipment needed for your trucking business, like bungee cords, chains, ratchet straps, duct tape, tarps, and locks. 
  • GPS systems – Write off any navigation system you use while driving your truck for work. 
  • Association dues – If you’re part of a union or other trucking association, you can deduct any required fees you’ve made to belong to that group. 
  • Liability insurance – While your health insurance will be deducted on a separate form (Form 1040), Schedule C is where you’ll count your premiums for auto/cargo liability and property damage insurance you’re required to have on your truck. 
  • Parking and toll fees – If you encounter any parking or toll fees while driving your truck for work, you can also count these as a deduction on Schedule C.

Claiming the IRS Commercial Clean Vehicle Credit

Beginning in 2023, the Commercial Clean Vehicle Credit will be available for qualified heavy-duty electric vehicles. According to the IRS, this credit will equal the lesser of:

  • 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel)
  • The incremental cost of the vehicle

The maximum credit is $7,500 for qualified vehicles with gross vehicle weight ratings (GVWRs) under 14,000 pounds and $40,000 for all other vehicles.

While the IRS has not yet released information on how to claim the Commercial Clean Vehicle Credit (as of Tax Day 2023), it will apply to vehicles purchased on or after Jan. 1, 2023. Keep checking the IRS website for the latest details.

Claiming Additional Heavy Vehicle Tax Deductions

There are also additional heavy vehicle tax deductions, credits, and benefits you can take following IRS guidelines for other tax forms.

Heavy vehicle tax deductions: Form 1040

If you’re an independent contractor or owner-operator and pay for your own health, dental, and vision insurance, you can count this as a deductible — just not as a business expense. Instead, you’ll deduct your health insurance separately (for you and your dependents) on Schedule 1 Form 1040.

Heavy vehicle tax deductions: IFTA

If you have a qualified motor vehicle and travel between two or more of the member jurisdictions (48 of the United States and 10 Canadian provinces), you must have an International Fuel Tax Agreement (IFTA) license and decals. IFTA reports are filed quarterly and are separate from your annual taxes.

You can count the fuel taxes and costs you pay on the road toward IFTA as part of your tax deductions.

Heavy vehicle tax credits: Form 2290

In certain circumstances, you can also claim a tax credit for heavy vehicles on your Form 2290.

For example, if your truck is registered as a Heavy Highway Motor Vehicle and it was stolen, destroyed, sold, or did not exceed mileage credit, you can count it as a tax credit.

Similarly, if your truck is registered as a heavy vehicle and you use it for 5,000 miles or less (7,500 miles or less for agricultural purposes), it will also qualify as a tax credit.

Form 8849 Schedule 6 is the IRS form used to claim a refund of excise taxes. There is no deadline to file this return. You can also claim credits using this return if you’ve overpaid in taxes.

Filing Form 8849 Schedule 6 with ExpressTruckTax

E-filing Form 8849 is easy with ExpressTruckTax. Here’s how you can easily claim your excise taxes with our help:

  • Create or sign in to the ExpressTruckTax account
  • Choose Form 8849 and fill in the necessary information
  • Pay for our services and transmit your return to the IRS

The IRS will issue a refund via check and send it to the address mentioned on the return. It can take up to six weeks to receive a refund.

When using ExpressTruckTax to file your 2290 forms, we automatically generate your Form 8849 when the credits on your Form 2290 exceed the tax you owe. We also offer bundle pricing so that you can E-File both Form 2290 and Form 8849 for one low price.

Why wait? Start e-filing with ExpressTruckTax today!

Everything You Need to Know About Form 2290 Taxable Vehicles

Posted on October 13, 2020 by - Taxable Heavy Vehicle

Every commercial motor vehicle with a taxable gross weight of 55,000 pounds or more must file a Form 2290 every year.

However, while everyone must file a Form 2290, not everyone must pay the Heavy Vehicle Use Tax (HVUT).

Some vehicles are Form 2290 tax-exempt and do not need to pay taxes to the IRS.

Taxable Vehicles

Most commercial motor vehicles will be subject to HVUT. Every vehicle that has a taxable gross weight of 55,000 pounds or more and drives more than 5,000 miles (7,500 for agricultural vehicles) must file Form 2290 and pay heavy vehicles use taxes.

The taxable gross weight of your vehicle is a sum of the following:

1. The actual unloaded weight of a fully equipped vehicle.

2. The actual unloaded weight of any trailers or semi-trailers that is fully equipped and is generally used in combination with the vehicle. 

3. The weight of the maximum load usually carried on the vehicle and the trailers or semi-trailers. 

HVUT Exempt Vehicles

Low mileage

If you do not drive a vehicle more than 5,000 miles in a tax year, that vehicle is considered tax-exempt! You will need to file a Form 2290 to stay up-to-date with the IRS, but you will not need to pay HVUT.

Agricultural

An agricultural vehicle is defined as a vehicle used exclusively for farming purposes and registered as a highway motor vehicle that is used for farming purposes. 

Agricultural vehicles will also be tax-exempt if they are driven less than 7,500 miles on public roads.

File your Form 2290 today

If you have a commercial motor vehicle you will need to file a Form 2290! There’s no easier way to file than with ExpressTruckTax! The e-filing process is easy to understand and only takes a few minutes.

It’s Time to File Your IRS Form 2290 HVUT

Posted on May 24, 2018 by - 2290 Form 2018, 2290 logging truck, express truck tax, expresstrucktax, Form 2290 instructions, HVUT Logging Vehicle, IRS form 2290, Logger, Logging, Logging Vehicle, Taxable Heavy Vehicle, taxable vehicle

It's Time to File Your IRS Form 2290 HVUTAre you ready to file your Form 2290? We begin accepting 2290 e-filing starting in 6 days. Unfortunately, taxes can’t be avoided forever. No matter how fast you run or how hard you fight tax deadlines still slowly creep towards you. The only way to make it out unscathed is to file your IRS Form 2290.

Luckily for the Heavy Vehicle Use Tax (HVUT) deadline, ExpressTruckTax provides a quick and convenient e-filing method so you can file your 2290 hassle free. Check out why ExpressTruckTax is the market leader in the 2290 e-filing industry.

It’s Almost Time to File Your IRS Form 2290 HVUT

Using ExpressTruckTax saves you time. Instead of having to go wait in a long line at an IRS office, you can quickly e-file online with ExpressTruckTax. Plus, the e-filing process is incredibly easy. All you have to do is follow the step-by-step guide to complete your form in just a few minutes and transmit it directly to the IRS.

This year, starting on 6/1/2018, we’re excited to share with you a few new features that will make your life easier. If you filed with us previously then you can copy your information from a previously accepted return to your current one. This way you don’t have to spend time re-entering your information.

With the bulk upload feature, you can quickly upload all of the information for your vehicles at once, helping those with multiple vehicles save time because they won’t have to enter their trucks in one by one. Use our Excel template or your own file to upload all of your vehicles at the same time.

File Your HVUT Tax Over The Phone

If you want an even easier way to file then contact our sister product, TSNAmerica at 803.386.0320. Their outstanding team will file Form 2290 in less than 5 minutes while you’re on the phone. The process is as easy as a 5-minute phone call, and as a result, you’ll receive a copy of your stamped Schedule 1 via email.

If you need any assistance, call the dedicated ExpressTruckTax support team Monday- Friday from 8:30 AM to 6 PM EST at 704.234.6005. These US-based representatives are HVUT experts and will take the time to answer all of your questions and will even walk you through the entire filing process. We also offer live chat, so you can instant message a support representative while filing, and 24/7 email support at support@expresstrucktax.com.

File Form 2290 Today!

For IRS Form 2290 Is my Rig an Agricultural Vehicle?

Posted on May 15, 2018 by - 2290 Form 2018, agricultural vehicle, express truck tax, expresstrucktax, Form 2290 due dates, Form 2290 instructions 2018, Form 2290 Online, Taxable Heavy Vehicle, taxable vehicle

For IRS Form 2290 Is my Rig an Agricultural Vehicle?One question we often run into is “What is an agricultural vehicle for IRS Form 2290?” That is because when you file IRS Form 2290, you are asked to indicate whether your taxable vehicle is used for agricultural purposes.

For IRS Form 2290 Is my Rig an Agricultural Vehicle?

Depending on your vehicle type and how you use it, the tax rates and filing requirements vary. This is just one reason why it’s so important to categorize your taxable vehicle correctly when filing your HVUT Form 2290.

We recently discussed the different requirements for logging vehicles, which are vehicles used solely for the transport of forested materials. Logging vehicles are taxed at a lower rate than typical heavy vehicles, so if you drive a logging truck, be sure to check “used for logging” to be taxed at the lower rate!

Another type of taxable vehicle with special requirements is the agricultural vehicle.

Agricultural Vehicles & Higher Mileage Limits

Vehicles typically required to file HVUT are those with a taxable gross weight over 55,000 lbs and that travel over 5,000 miles on public highways throughout the tax period.

BUT to give farmers a break, the IRS made the requirements a bit more lenient for vehicles used in agriculture. Agricultural vehicles, regardless of their weight, are allowed to drive up to 7,500 miles on public highways each year before having to pay any tax at all!

Just to clarify, this does not mean that you don’t have to file HVUT at all. If your gross vehicle weight is over 55,000 pounds, you must still file HVUT and receive a stamped Schedule 1. However, if your agricultural vehicle will drive fewer than 7,500 miles throughout the tax year, you will owe zero tax when you file! This is known as filing a Category W or a Suspended/Low Mileage Vehicle. 

Does My Vehicle Qualify as an Agricultural Vehicle?

To ensure that your vehicle qualifies as an “agricultural” vehicle according to IRS standards, here are the two requirements your vehicle must meet:

  • 1. The vehicle is used primarily for farming purposes throughout the tax year. But what does the IRS consider “primarily for farming purposes”? It’s actually quite simple. More than half of the vehicle’s total mileage for the year must be used for farming purposes. 
  • And a farming purpose, according to the IRS, is any activity that contributes to the conduct of a farm. This can include activities such as transporting goods to and from a farm (goods like livestock, produce, animal feed, fertilizer, etc), direct use in agricultural production, or just performing work around the farm like repairing fences, building irrigation ditches, clearing land, etc. 

-AND-

  • 2. The vehicle is registered as an agricultural vehicle in your state. Although your vehicle must be registered as such, no special license plates or tags marked “agriculture” are required to maintain your status as an agricultural vehicle.
  • If your vehicle meets both of these requirements above, then you can file as an agricultural vehicle with a higher mileage limit!!

To file as a suspended agriculture vehicle, skip the first “Taxable Vehicle” section of 2290, and instead enter your vehicle’s information under the “Low Mileage/Suspended Vehicle” section. And be sure you check the box “Used for Agriculture.” 

Exceeding the Mileage Limit

Occasionally, agriculture vehicles will be filed as Suspended (Category W) at the beginning of the tax period, but then exceed the 7,500-mile limit during the year.

If your vehicle goes over, you must file a Form 2290 Amendment for a Mileage Increase. The amendment is due by the end of the month following the month in which you exceeded the limit. This means that if you went over 7,500 in January, then the amendment must be filed by the last day of February.

When filing the mileage increase amendment, the IRS will prorate your HVUT for the remaining months of the tax year (which runs from July 1st to June 30th each year). This means that even though you will owe some tax, it will not be the full amount you would’ve owed if you had filed as a non-suspended vehicle initially. Hooray, for lower tax!

Year-Round Support For Farmers!

If anyone deserves a break, it’s farmers! That’s why we’re always here to assist you 24/7, 365. Pre-file today with ExpressTruckTax and be set until July 2019. Our e-filing process is the fastest and easiest way to receive your stamped Schedule 1.

If you have questions about pre-filing your HVUT 2290 contact our US-based support team via call, live chat, or 24/7 email support.

Pre-File Your HVUT Today!

What Is A Logging Vehicle For IRS Form 2290?

Posted on May 8, 2018 by - 2290 Form 2018, 2290 logging truck, express truck tax, expresstrucktax, Form 2290 instructions, HVUT Logging Vehicle, IRS form 2290, Logger, Logging, Logging Vehicle, Taxable Heavy Vehicle, taxable vehicle

One question we often run into is “What is a logging vehicle for IRS Form 2290?” That is because when you file IRS Form 2290, you are asked to indicate whether your taxable vehicle is used for logging.

What is a Logging Vehicle For IRS Form 2290?

You might confuse the term “logging vehicle” with electronic logging devices. For Form 2290, however, logging vehicles are used to… well… haul logs. As in wood or other products from the forest.

How you classify your truck is essential because you can receive a reduced tax rate.

Check to see if your logging vehicle fits the IRS criteria to ensure you are paying the correct tax:

  • Your truck is exclusively used to transport material harvest from a forested site, Or your vehicle is used exclusively to transport harvested materials from one forested site to another forested site. If your vehicle runs between forested sites, it can use public highways in between those sites and still be considered a logging vehicle.

AND

  • Your vehicle is registered in your base state (or any other state in which it is required to be registered) as a highway motor vehicle used exclusively for the transport of harvested materials from a forested site. Although the truck must be registered as a “logging vehicle” in your state, no special tag or license plate is required to identify the vehicle as a logging vehicle.

So, your vehicle should be registered as a logging vehicle, and it must be used to transport harvested forest materials only – but what does the IRS consider “harvested material”?


According to the IRS guideline, harvested products can include any raw timber taken from a forest, OR any timber that has been processed on the forested site for commercial processes, meaning the timber has already been sawed into lumber, chipped, or milled in some way.

If your vehicle fits these guidelines, then be sure to check the box “Used for Logging” when completing your HVUT Form 2290 to reap the rewards of a lower tax rate!

If you have questions about the status of your taxable vehicle, ask our team of experts. They know all of the IRS guidelines for logging, agriculture, exempt, suspended vehicles, and more! They are here to steer yours in the right direction!

Pre-File IRS Form 2290

The One Thing Truck Drivers Cannot Escape

Posted on November 8, 2017 by - Form 2290, heavy vehicle use tax, HVUT, HVUT Penalties, IFTA, stamped Schedule 1, Taxable Heavy Vehicle

Taxes can be confusing. First of all, there are a ton of different returns to remember from income tax returns, IFTA returns, Heavy Vehicle Use Taxes (HVUT), and more. Second of all, each of these different returns have different due dates to remember.

The HVUT Form 2290 deadline can be especially tricky because it can be due at different times of the year. However, don’t let it grind your gears because we are here to go over the deadline so you will know exactly when to file.

Your Form 2290 Deadline

Alright, so the HVUT Form 2290 tax period runs from July 1 to June 30 of the following year. The current HVUT tax period began on July 1, 2017 and will end on June 30, 2018. This is important to know because the HUVT deadline is based on your vehicle’s first use month.

Your first use month is the month that you first use your heavy vehicle on public highways during the tax period. Then your 2290 is due the last day of the month following the first use month.

Because most people first use their heavy vehicles in July at the beginning of the period their deadline is August 31st. However, if you don’t use your vehicle until October then your deadline will be on November 30.

See, no big deal, the deadline is easy! Just remember it’s due the last day of the month following your first used month. Now let’s see what other HVUT 2290 Form  topics we can tackle. 

Instantly get your Form 2290 Stamped Schedule 1 With ExpressTruckTax

What Is A Taxable Heavy Vehicle?

You have to file Form 2290 for all of your taxable heavy vehicles, which are highway motor vehicles with a taxable gross weight of 55,000 pounds or more. A highway motor vehicle is any vehicle that is self-propelled and designed to carry a load over public highways, regardless if they are also designed to perform other functions.

Examples of these vehicles include trucks, truck tractors, and buses. Usually, vans, pickup trucks, and panel trucks are not subject to the HVUT because they weight less than 55,000 pounds. 

What Are The HVUT Penalties?

If you fail to file Form 2290 by the deadline you will have penalties to face. The penalty for filing late is 4.5% of the total tax you owe and this amount will accrue on a monthly basis for up to five months.

Also, if you fail to make a payment by the deadline you will face an additional penalty of .5% of the total amount due. Plus, you will face an additional interest charge of .54% on a monthly basis as well. 

How Do I File HVUT Form 2290?

Well, that’s super easy. Head to ExpressTruckTax.com to create your free account then follow the step-by-step e-filing guide to complete your form in a matter of minutes. The instructions tell you what information is needed and where so you can transmit your form directly to the IRS in no time!

As a result of filing with ExpressTruckTax, you will receive your stamped Schedule 1 via email within 15 minutes of transmitting your Form 2290 to the IRS! You can also have your stamped Schedule 1 faxed or mailed wherever you need it to go and simply log in to your account at any time to access it.

Contact Us

If you need any HVUT assistance please don’t hesitate to contact the amazing, US-based ExpressTruckTax support team. We’re available Monday – Friday from 9 AM to 6 PM EST at 704.234.6005. We also offer live chat and 24/7 email support at support@ExpressTruckTax.com.