Understanding the Mileage Exemption

The Heavy Highway Vehicle Use Tax (HVUT) is charged against trucks that are used on public highways and have a gross weight of 55,000 pounds or above. With regard to taxes, you can get a mileage exemption if your vehicle only travels 5,000 miles or less (7,500 miles for agricultural vehicles) during the tax period. You may also qualify for HVUT exemption leading to a lesser amount of taxes for you.

Eligibility for the Exemption

In order to be eligible for the mileage exemption, your vehicle has to be used primarily for commercial or agricultural purposes and could not surpass the mileage mark. Seasonal trucks, low-mileage unit trucks, and farm engines stand to benefit the most from this exemption. The burden of proof for eligibility requires proper documentation which include an odometer log and trip logs.

How to Claim Your Tax Credit

Claiming is easy. If someone already paid the HVUT and later learns that the particular vehicle qualifies for the exemption, then he must submit 8849, Schedule 6 for refund. For those who are anticipating not surpassing the mileage requirement, remember to label your vehicle as suspended when filing Form 2290 to avoid refund claims eventually.

Having mileage records tracked makes the filing process more efficient and easier to manage.

How to Save Money while Staying Compliant to Tax Laws

Keeping proper records is important to not incur fines penalties and to claim your exemption successfully. Doing so will make it easier to deal with forms submission. Using mileage exemption will help reduce amount of tax one owes in addition to being compliant with the IRS regulations, hence, saving a business money.

Note: For more information, visit IRS website