Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Instructions For Form 1040x

Back TaxesTaxact Amended Return1040 FormVa Form 10 10ezFree State Tax ExtensionWww HrblockFiling 2010 Taxes Late OnlineFill Out 1040x Form OnlineVita Tax PreparationWhere Can I File My State Taxes Online For FreeIrs Tax Forms 1040xH&block Com1040ex Form 20141020 Ez FormFree Tax Software 2012Download Tax Forms 20111040ez 2010How To File 2012 Taxes Late Online FreeH&r Block For Military2012 Turbo Tax ReturnTaxcut ComH And R Block OnlineTurbotax Free State FilingEfileFiling Your State Taxes FreeForm 1040ez More:label_form_201040ez More:taxesH&r Block Online Tax FilingFile 2012 Taxes TurbotaxIncome Tax Filing ExtensionPrint State Tax FormAmend Prior Years Taxes1040ez Irs InstructionsAmended TaxesAmending A 2011 Tax Return2014 1040ez FormFree Tax Filing For Low IncomeWww Freetax ComTurbo Tax Filing For 2010Taxact Login Tax Return1040 Ez Online

Instructions For Form 1040x

Instructions for form 1040x 8. Instructions for form 1040x   Business Expenses Table of Contents Introduction Useful Items - You may want to see: Bad DebtsAccrual method. Instructions for form 1040x Cash method. Instructions for form 1040x Car and Truck ExpensesOffice in the home. Instructions for form 1040x Methods for Deducting Car and Truck Expenses Reimbursing Your Employees for Expenses Depreciation Employees' PayFringe benefits. Instructions for form 1040x InsuranceHow to figure the deduction. Instructions for form 1040x Interest Legal and Professional FeesTax preparation fees. Instructions for form 1040x Pension Plans Rent Expense Taxes Travel, Meals, and EntertainmentTransportation. Instructions for form 1040x Taxi, commuter bus, and limousine. Instructions for form 1040x Baggage and shipping. Instructions for form 1040x Car or truck. Instructions for form 1040x Meals and lodging. Instructions for form 1040x Cleaning. Instructions for form 1040x Telephone. Instructions for form 1040x Tips. Instructions for form 1040x More information. Instructions for form 1040x Business Use of Your HomeExceptions to exclusive use. Instructions for form 1040x Other Expenses You Can Deduct Expenses You Cannot Deduct Introduction You can deduct the costs of operating your business. Instructions for form 1040x These costs are known as business expenses. Instructions for form 1040x These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. Instructions for form 1040x To be deductible, a business expense must be both ordinary and necessary. Instructions for form 1040x An ordinary expense is one that is common and accepted in your field of business. Instructions for form 1040x A necessary expense is one that is helpful and appropriate for your business. Instructions for form 1040x An expense does not have to be indispensable to be considered necessary. Instructions for form 1040x For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses. Instructions for form 1040x If you have an expense that is partly for business and partly personal, separate the personal part from the business part. Instructions for form 1040x The personal part is not deductible. Instructions for form 1040x Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 946 How To Depreciate Property See chapter 12 for information about getting publications and forms. Instructions for form 1040x Bad Debts If someone owes you money you cannot collect, you have a bad debt. Instructions for form 1040x There are two kinds of bad debts, business bad debts and nonbusiness bad debts. Instructions for form 1040x A business bad debt is generally one that comes from operating your trade or business. Instructions for form 1040x You may be able to deduct business bad debts as an expense on your business tax return. Instructions for form 1040x Business bad debt. Instructions for form 1040x   A business bad debt is a loss from the worthlessness of a debt that was either of the following. Instructions for form 1040x Created or acquired in your business. Instructions for form 1040x Closely related to your business when it became partly or totally worthless. Instructions for form 1040x A debt is closely related to your business if your primary motive for incurring the debt is a business reason. Instructions for form 1040x   Business bad debts are mainly the result of credit sales to customers. Instructions for form 1040x They can also be the result of loans to suppliers, clients, employees, or distributors. Instructions for form 1040x Goods and services customers have not paid for are shown in your books as either accounts receivable or notes receivable. Instructions for form 1040x If you are unable to collect any part of these accounts or notes receivable, the uncollectible part is a business bad debt. Instructions for form 1040x    You can take a bad debt deduction for these accounts and notes receivable only if the amount you were owed was included in your gross income either for the year the deduction is claimed or for a prior year. Instructions for form 1040x Accrual method. Instructions for form 1040x   If you use an accrual method of accounting, you normally report income as you earn it. Instructions for form 1040x You can take a bad debt deduction for an uncollectible receivable if you have included the uncollectible amount in income. Instructions for form 1040x Cash method. Instructions for form 1040x   If you use the cash method of accounting, you normally report income when you receive payment. Instructions for form 1040x You cannot take a bad debt deduction for amounts owed to you that you have not received and cannot collect if you never included those amounts in income. Instructions for form 1040x More information. Instructions for form 1040x   For more information about business bad debts, see chapter 10 in Publication 535. Instructions for form 1040x Nonbusiness bad debts. Instructions for form 1040x   All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040). Instructions for form 1040x For more information on nonbusiness bad debts, see Publication 550, Investment Income and Expenses. Instructions for form 1040x Car and Truck Expenses If you use your car or truck in your business, you may be able to deduct the costs of operating and maintaining your vehicle. Instructions for form 1040x You also may be able to deduct other costs of local transportation and traveling away from home overnight on business. Instructions for form 1040x You may qualify for a tax credit for qualified plug-in electric vehicles, qualified plug-in electric drive motor vehicles, and alternative motor vehicles you place in service during the year. Instructions for form 1040x See Form 8936 and Form 8910 for more information. Instructions for form 1040x Local transportation expenses. Instructions for form 1040x   Local transportation expenses include the ordinary and necessary costs of all the following. Instructions for form 1040x Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Instructions for form 1040x Tax home is defined later. Instructions for form 1040x Visiting clients or customers. Instructions for form 1040x Going to a business meeting away from your regular workplace. Instructions for form 1040x Getting from your home to a temporary workplace when you have one or more regular places of work. Instructions for form 1040x These temporary workplaces can be either within the area of your tax home or outside that area. Instructions for form 1040x Local business transportation does not include expenses you have while traveling away from home overnight. Instructions for form 1040x Those expenses are deductible as travel expenses and are discussed later under Travel, Meals, and Entertainment. Instructions for form 1040x However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Instructions for form 1040x   Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Instructions for form 1040x It includes the entire city or general area in which your business or work is located. Instructions for form 1040x Example. Instructions for form 1040x You operate a printing business out of rented office space. Instructions for form 1040x You use your van to deliver completed jobs to your customers. Instructions for form 1040x You can deduct the cost of round-trip transportation between your customers and your print shop. Instructions for form 1040x    You cannot deduct the costs of driving your car or truck between your home and your main or regular workplace. Instructions for form 1040x These costs are personal commuting expenses. Instructions for form 1040x Office in the home. Instructions for form 1040x   Your workplace can be your home if you have an office in your home that qualifies as your principal place of business. Instructions for form 1040x For more information, see Business Use of Your Home, later. Instructions for form 1040x Example. Instructions for form 1040x You are a graphics designer. Instructions for form 1040x You operate your business out of your home. Instructions for form 1040x Your home qualifies as your principal place of business. Instructions for form 1040x You occasionally have to drive to your clients to deliver your completed work. Instructions for form 1040x You can deduct the cost of the round-trip transportation between your home and your clients. Instructions for form 1040x Methods for Deducting Car and Truck Expenses For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses. Instructions for form 1040x Standard mileage rate. Instructions for form 1040x Actual expenses. Instructions for form 1040x Standard mileage rate. Instructions for form 1040x   You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Instructions for form 1040x For 2013, the standard mileage rate is 56. Instructions for form 1040x 5 cents per mile. Instructions for form 1040x    If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls. Instructions for form 1040x Choosing the standard mileage rate. Instructions for form 1040x   If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. Instructions for form 1040x In later years, you can choose to use either the standard mileage rate or actual expenses. Instructions for form 1040x   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Instructions for form 1040x Standard mileage rate not allowed. Instructions for form 1040x   You cannot use the standard mileage rate if you: Operate five or more cars at the same time, Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS, Claimed a section 179 deduction on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Instructions for form 1040x Parking fees and tolls. Instructions for form 1040x   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Instructions for form 1040x (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Instructions for form 1040x ) Actual expenses. Instructions for form 1040x   If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. Instructions for form 1040x    If you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. Instructions for form 1040x   Actual car expenses include the costs of the following items. Instructions for form 1040x Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Instructions for form 1040x You can divide your expenses based on the miles driven for each purpose. Instructions for form 1040x Example. Instructions for form 1040x You are the sole proprietor of a flower shop. Instructions for form 1040x You drove your van 20,000 miles during the year. Instructions for form 1040x 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use (including commuting miles). Instructions for form 1040x You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Instructions for form 1040x More information. Instructions for form 1040x   For more information about the rules for claiming car and truck expenses, see Publication 463. Instructions for form 1040x Reimbursing Your Employees for Expenses You generally can deduct the amount you reimburse your employees for car and truck expenses. Instructions for form 1040x The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Instructions for form 1040x For details, see chapter 11 in Publication 535. Instructions for form 1040x That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Instructions for form 1040x Depreciation If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Instructions for form 1040x You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. Instructions for form 1040x This method of deducting the cost of business property is called depreciation. Instructions for form 1040x The discussion here is brief. Instructions for form 1040x You will find more information about depreciation in Publication 946. Instructions for form 1040x What property can be depreciated?   You can depreciate property if it meets all the following requirements. Instructions for form 1040x It must be property you own. Instructions for form 1040x It must be used in business or held to produce income. Instructions for form 1040x You never can depreciate inventory (explained in chapter 2) because it is not held for use in your business. Instructions for form 1040x It must have a useful life that extends substantially beyond the year it is placed in service. Instructions for form 1040x It must have a determinable useful life, which means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Instructions for form 1040x You never can depreciate the cost of land because land does not wear out, become obsolete, or get used up. Instructions for form 1040x It must not be excepted property. Instructions for form 1040x This includes property placed in service and disposed of in the same year. Instructions for form 1040x Repairs. Instructions for form 1040x    You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. Instructions for form 1040x You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ. Instructions for form 1040x Depreciation method. Instructions for form 1040x   The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). Instructions for form 1040x MACRS is discussed in detail in Publication 946. Instructions for form 1040x Section 179 deduction. Instructions for form 1040x   You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Instructions for form 1040x This deduction is known as the “section 179 deduction. Instructions for form 1040x ” The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). Instructions for form 1040x See IRC 179(e). Instructions for form 1040x   This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Instructions for form 1040x The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). Instructions for form 1040x Special rules apply to trucks and vans. Instructions for form 1040x For more information, see Publication 946. Instructions for form 1040x It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction. Instructions for form 1040x    Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. Instructions for form 1040x For more information, see the Instructions for Form 4562 or Publication 946. Instructions for form 1040x Listed property. Instructions for form 1040x   You must follow special rules and recordkeeping requirements when depreciating listed property. Instructions for form 1040x Listed property is any of the following. Instructions for form 1040x Most passenger automobiles. Instructions for form 1040x Most other property used for transportation. Instructions for form 1040x Any property of a type generally used for entertainment, recreation, or amusement. Instructions for form 1040x Certain computers and related peripheral equipment. Instructions for form 1040x   For more information about listed property, see Publication 946. Instructions for form 1040x Form 4562. Instructions for form 1040x   Use Form 4562, Depreciation and Amortization, if you are claiming any of the following. Instructions for form 1040x Depreciation on property placed in service during the current tax year. Instructions for form 1040x A section 179 deduction. Instructions for form 1040x Depreciation on any listed property (regardless of when it was placed in service). Instructions for form 1040x    If you have to use Form 4562, you must file Schedule C. Instructions for form 1040x You cannot use Schedule C-EZ. Instructions for form 1040x   Employees' Pay You can generally deduct on Schedule C the pay you give your employees for the services they perform for your business. Instructions for form 1040x The pay may be in cash, property, or services. Instructions for form 1040x To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it in the tax year. Instructions for form 1040x In addition, the pay must meet both the following tests. Instructions for form 1040x The pay must be reasonable. Instructions for form 1040x The pay must be for services performed. Instructions for form 1040x Chapter 2 in Publication 535 explains and defines these requirements. Instructions for form 1040x You cannot deduct your own salary or any personal withdrawals you make from your business. Instructions for form 1040x As a sole proprietor, you are not an employee of the business. Instructions for form 1040x If you had employees during the year, you must use Schedule C. Instructions for form 1040x You cannot use Schedule C-EZ. Instructions for form 1040x Kinds of pay. Instructions for form 1040x   Some of the ways you may provide pay to your employees are listed below. Instructions for form 1040x For an explanation of each of these items, see chapter 2 in Publication 535. Instructions for form 1040x Awards. Instructions for form 1040x Bonuses. Instructions for form 1040x Education expenses. Instructions for form 1040x Fringe benefits (discussed later). Instructions for form 1040x Loans or advances you do not expect the employee to repay if they are for personal services actually performed. Instructions for form 1040x Property you transfer to an employee as payment for services. Instructions for form 1040x Reimbursements for employee business expenses. Instructions for form 1040x Sick pay. Instructions for form 1040x Vacation pay. Instructions for form 1040x Fringe benefits. Instructions for form 1040x   A fringe benefit is a form of pay for the performance of services. Instructions for form 1040x The following are examples of fringe benefits. Instructions for form 1040x Benefits under qualified employee benefit programs. Instructions for form 1040x Meals and lodging. Instructions for form 1040x The use of a car. Instructions for form 1040x Flights on airplanes. Instructions for form 1040x Discounts on property or services. Instructions for form 1040x Memberships in country clubs or other social clubs. Instructions for form 1040x Tickets to entertainment or sporting events. Instructions for form 1040x   Employee benefit programs include the following. Instructions for form 1040x Accident and health plans. Instructions for form 1040x Adoption assistance. Instructions for form 1040x Cafeteria plans. Instructions for form 1040x Dependent care assistance. Instructions for form 1040x Educational assistance. Instructions for form 1040x Group-term life insurance coverage. Instructions for form 1040x Welfare benefit funds. Instructions for form 1040x   You can generally deduct the cost of fringe benefits you provide on your Schedule C in whatever category the cost falls. Instructions for form 1040x For example, if you allow an employee to use a car or other property you lease, deduct the cost of the lease as a rent or lease expense. Instructions for form 1040x If you own the property, include your deduction for its cost or other basis as a section 179 deduction or a depreciation deduction. Instructions for form 1040x    You may be able to exclude all or part of the fringe benefits you provide from your employees' wages. Instructions for form 1040x For more information about fringe benefits and the exclusion of benefits, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Instructions for form 1040x Insurance You can generally deduct premiums you pay for the following kinds of insurance related to your business. Instructions for form 1040x Fire, theft, flood, or similar insurance. Instructions for form 1040x Credit insurance that covers losses from business bad debts. Instructions for form 1040x Group hospitalization and medical insurance for employees, including long-term care insurance. Instructions for form 1040x Liability insurance. Instructions for form 1040x Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Instructions for form 1040x Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Instructions for form 1040x Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Instructions for form 1040x Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Instructions for form 1040x Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Instructions for form 1040x If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Instructions for form 1040x If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Instructions for form 1040x Life insurance covering your employees if you are not directly or indirectly the beneficiary under the contract. Instructions for form 1040x Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Instructions for form 1040x Nondeductible premiums. Instructions for form 1040x   You cannot deduct premiums on the following kinds of insurance. Instructions for form 1040x Self-insurance reserve funds. Instructions for form 1040x You cannot deduct amounts credited to a reserve set up for self-insurance. Instructions for form 1040x This applies even if you cannot get business insurance coverage for certain business risks. Instructions for form 1040x However, your actual losses may be deductible. Instructions for form 1040x For more information, see Publication 547, Casualties, Disasters, and Thefts. Instructions for form 1040x Loss of earnings. Instructions for form 1040x You cannot deduct premiums for a policy that pays for your lost earnings due to sickness or disability. Instructions for form 1040x However, see item (8) in the previous list. Instructions for form 1040x Certain life insurance and annuities. Instructions for form 1040x For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Instructions for form 1040x You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Instructions for form 1040x A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Instructions for form 1040x For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Instructions for form 1040x The disallowance applies without regard to whom the policy covers. Instructions for form 1040x Insurance to secure a loan. Instructions for form 1040x If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Instructions for form 1040x Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Instructions for form 1040x In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Instructions for form 1040x Self-employed health insurance deduction. Instructions for form 1040x   You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you and your family. Instructions for form 1040x How to figure the deduction. Instructions for form 1040x   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Instructions for form 1040x However, if any of the following apply, you must use the worksheet in chapter 6 of Publication 535. Instructions for form 1040x You have more than one source of income subject to self-employment tax. Instructions for form 1040x You file Form 2555 or Form 2555-EZ (relating to foreign earned income). Instructions for form 1040x You are using amounts paid for qualified long-term care insurance to figure the deduction. Instructions for form 1040x Prepayment. Instructions for form 1040x   You cannot deduct expenses in advance, even if you pay them in advance. Instructions for form 1040x This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Instructions for form 1040x Example. Instructions for form 1040x In 2013, you signed a 3-year insurance contract. Instructions for form 1040x Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Instructions for form 1040x You can deduct in 2014 and 2015 the premium allocable to those years. Instructions for form 1040x More information. Instructions for form 1040x   For more information about deducting insurance, see chapter 6 in Publication 535. Instructions for form 1040x Interest You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your business. Instructions for form 1040x Interest relates to your business if you use the proceeds of the loan for a business expense. Instructions for form 1040x It does not matter what type of property secures the loan. Instructions for form 1040x You can deduct interest on a debt only if you meet all of the following requirements. Instructions for form 1040x You are legally liable for that debt. Instructions for form 1040x Both you and the lender intend that the debt be repaid. Instructions for form 1040x You and the lender have a true debtor-creditor relationship. Instructions for form 1040x You cannot deduct on Schedule C or C-EZ the interest you paid on personal loans. Instructions for form 1040x If a loan is part business and part personal, you must divide the interest between the personal part and the business part. Instructions for form 1040x Example. Instructions for form 1040x In 2013, you paid $600 interest on a car loan. Instructions for form 1040x During 2013, you used the car 60% for business and 40% for personal purposes. Instructions for form 1040x You are claiming actual expenses on the car. Instructions for form 1040x You can only deduct $360 (60% × $600) for 2013 on Schedule C or C-EZ. Instructions for form 1040x The remaining interest of $240 is a nondeductible personal expense. Instructions for form 1040x More information. Instructions for form 1040x   For more information about deducting interest, see chapter 4 in Publication 535. Instructions for form 1040x That chapter explains the following items. Instructions for form 1040x Interest you can deduct. Instructions for form 1040x Interest you cannot deduct. Instructions for form 1040x How to allocate interest between personal and business use. Instructions for form 1040x When to deduct interest. Instructions for form 1040x The rules for a below-market interest rate loan. Instructions for form 1040x (This is generally a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Instructions for form 1040x ) Legal and Professional Fees Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on Schedule C or C-EZ. Instructions for form 1040x However, you usually cannot deduct legal fees you pay to acquire business assets. Instructions for form 1040x Add them to the basis of the property. Instructions for form 1040x If the fees include payments for work of a personal nature (such as making a will), you can take a business deduction only for the part of the fee related to your business. Instructions for form 1040x The personal part of legal fees for producing or collecting taxable income, doing or keeping your job, or for tax advice may be deductible on Schedule A (Form 1040) if you itemize deductions. Instructions for form 1040x For more information, see Publication 529, Miscellaneous Deductions. Instructions for form 1040x Tax preparation fees. Instructions for form 1040x   You can deduct on Schedule C or C-EZ the cost of preparing that part of your tax return relating to your business as a sole proprietor or statutory employee. Instructions for form 1040x You can deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Instructions for form 1040x   You can also deduct on Schedule C or C-EZ the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor or statutory employee. Instructions for form 1040x Pension Plans You can set up and maintain the following small business retirement plans for yourself and your employees. Instructions for form 1040x SEP (Simplified Employee Pension) plans. Instructions for form 1040x SIMPLE (Savings Incentive Match Plan for Employees) plans. Instructions for form 1040x Qualified plans (including Keogh or H. Instructions for form 1040x R. Instructions for form 1040x 10 plans). Instructions for form 1040x SEP, SIMPLE, and qualified plans offer you and your employees a tax favored way to save for retirement. Instructions for form 1040x You can deduct contributions you make to the plan for your employees on line 19 of Schedule C. Instructions for form 1040x If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 28 of Form 1040. Instructions for form 1040x You can also deduct trustees' fees if contributions to the plan do not cover them. Instructions for form 1040x Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Instructions for form 1040x You may also be able to claim a tax credit of 50% of the first $1,000 of qualified startup costs if you begin a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. Instructions for form 1040x Under certain plans, employees can have you contribute limited amounts of their before-tax pay to a plan. Instructions for form 1040x These amounts (and earnings on them) are generally tax free until your employees receive distributions from the plan. Instructions for form 1040x For more information on retirement plans for small business, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Instructions for form 1040x Publication 590, Individual Retirement Arrangements (IRAs), discusses other tax favored ways to save for retirement. Instructions for form 1040x Rent Expense Rent is any amount you pay for the use of property you do not own. Instructions for form 1040x In general, you can deduct rent as a business expense only if the rent is for property you use in your business. Instructions for form 1040x If you have or will receive equity in or title to the property, you cannot deduct the rent. Instructions for form 1040x Unreasonable rent. Instructions for form 1040x   You cannot take a rental deduction for unreasonable rents. Instructions for form 1040x Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Instructions for form 1040x Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Instructions for form 1040x Rent is not unreasonable just because it is figured as a percentage of gross receipts. Instructions for form 1040x   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. Instructions for form 1040x For a list of the other related persons, see section 267 of the Internal Revenue Code. Instructions for form 1040x Rent on your home. Instructions for form 1040x   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Instructions for form 1040x You must meet the requirements for business use of your home. Instructions for form 1040x For more information, see Business Use of Your Home , later. Instructions for form 1040x Rent paid in advance. Instructions for form 1040x   Generally, rent paid in your business is deductible in the year paid or accrued. Instructions for form 1040x If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Instructions for form 1040x You can deduct the rest of your payment only over the period to which it applies. Instructions for form 1040x More information. Instructions for form 1040x   For more information about rent, see chapter 3 in Publication 535. Instructions for form 1040x Taxes You can deduct on Schedule C or C-EZ various federal, state, local, and foreign taxes directly attributable to your business. Instructions for form 1040x Income taxes. Instructions for form 1040x   You can deduct on Schedule C or C-EZ a state tax on gross income (as distinguished from net income) directly attributable to your business. Instructions for form 1040x You can deduct other state and local income taxes on Schedule A (Form 1040) if you itemize your deductions. Instructions for form 1040x Do not deduct federal income tax. Instructions for form 1040x Employment taxes. Instructions for form 1040x   You can deduct the social security, Medicare, and federal unemployment (FUTA) taxes you paid out of your own funds as an employer. Instructions for form 1040x Employment taxes are discussed briefly in chapter 1. Instructions for form 1040x You can also deduct payments you made as an employer to a state unemployment compensation fund or to a state disability benefit fund. Instructions for form 1040x Deduct these payments as taxes. Instructions for form 1040x Self-employment tax. Instructions for form 1040x   You can deduct one-half of your self-employment tax on line 27 of Form 1040. Instructions for form 1040x Self-employment tax is discussed in chapters 1 and 10. Instructions for form 1040x Personal property tax. Instructions for form 1040x   You can deduct on Schedule C or C-EZ any tax imposed by a state or local government on personal property used in your business. Instructions for form 1040x   You can also deduct registration fees for the right to use property within a state or local area. Instructions for form 1040x Example. Instructions for form 1040x May and Julius Winter drove their car 7,000 business miles out of a total of 10,000 miles. Instructions for form 1040x They had to pay $25 for their annual state license tags and $20 for their city registration sticker. Instructions for form 1040x They also paid $235 in city personal property tax on the car, for a total of $280. Instructions for form 1040x They are claiming their actual car expenses. Instructions for form 1040x Because they used the car 70% for business, they can deduct 70% of the $280, or $196, as a business expense. Instructions for form 1040x Real estate taxes. Instructions for form 1040x   You can deduct on Schedule C or C-EZ the real estate taxes you pay on your business property. Instructions for form 1040x Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Instructions for form 1040x The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Instructions for form 1040x   For more information about real estate taxes, see chapter 5 in Publication 535. Instructions for form 1040x That chapter explains special rules for deducting the following items. Instructions for form 1040x Taxes for local benefits, such as those for sidewalks, streets, water mains, and sewer lines. Instructions for form 1040x Real estate taxes when you buy or sell property during the year. Instructions for form 1040x Real estate taxes if you use an accrual method of accounting and choose to accrue real estate tax related to a definite period ratably over that period. Instructions for form 1040x Sales tax. Instructions for form 1040x   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Instructions for form 1040x If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Instructions for form 1040x If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Instructions for form 1040x If the property is depreciable, add the sales tax to the basis for depreciation. Instructions for form 1040x For information on the basis of property, see Publication 551, Basis of Assets. Instructions for form 1040x    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Instructions for form 1040x Do not include these taxes in gross receipts or sales. Instructions for form 1040x Excise taxes. Instructions for form 1040x   You can deduct on Schedule C or C-EZ all excise taxes that are ordinary and necessary expenses of carrying on your business. Instructions for form 1040x Excise taxes are discussed briefly in chapter 1. Instructions for form 1040x Fuel taxes. Instructions for form 1040x   Taxes on gasoline, diesel fuel, and other motor fuels you use in your business are usually included as part of the cost of the fuel. Instructions for form 1040x Do not deduct these taxes as a separate item. Instructions for form 1040x   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Instructions for form 1040x For more information, see Publication 510, Excise Taxes. Instructions for form 1040x Travel, Meals, and Entertainment This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ. Instructions for form 1040x Table 8-1. Instructions for form 1040x When Are Entertainment Expenses Deductible? (Note. Instructions for form 1040x The following is a summary of the rules for deducting entertainment expenses. Instructions for form 1040x For more details about these rules, see Publication 463. Instructions for form 1040x ) General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Instructions for form 1040x Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Instructions for form 1040x An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Instructions for form 1040x A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business. Instructions for form 1040x Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Instructions for form 1040x   Associated test Entertainment is associated with your trade or business, and Entertainment directly precedes or follows a substantial business discussion. Instructions for form 1040x Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Instructions for form 1040x You cannot deduct expenses that are lavish or extravagant under the circumstances. Instructions for form 1040x You generally can deduct only 50% of your unreimbursed entertainment expenses. Instructions for form 1040x Travel expenses. Instructions for form 1040x   These are the ordinary and necessary expenses of traveling away from home for your business. Instructions for form 1040x You are traveling away from home if both the following conditions are met. Instructions for form 1040x Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work. Instructions for form 1040x You need to get sleep or rest to meet the demands of your work while away from home. Instructions for form 1040x Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Instructions for form 1040x It includes the entire city or general area in which your business is located. Instructions for form 1040x See Publication 463 for more information. Instructions for form 1040x   The following is a brief discussion of the expenses you can deduct. Instructions for form 1040x Transportation. Instructions for form 1040x   You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination. Instructions for form 1040x Taxi, commuter bus, and limousine. Instructions for form 1040x   You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home. Instructions for form 1040x Baggage and shipping. Instructions for form 1040x   You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations. Instructions for form 1040x Car or truck. Instructions for form 1040x   You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. Instructions for form 1040x You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. Instructions for form 1040x If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Instructions for form 1040x Meals and lodging. Instructions for form 1040x   You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Instructions for form 1040x In most cases, you can deduct only 50% of your meal expenses. Instructions for form 1040x Cleaning. Instructions for form 1040x   You can deduct the costs of dry cleaning and laundry while on your business trip. Instructions for form 1040x Telephone. Instructions for form 1040x   You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices. Instructions for form 1040x Tips. Instructions for form 1040x   You can deduct the tips you pay for any expense in this list. Instructions for form 1040x More information. Instructions for form 1040x   For more information about travel expenses, see Publication 463. Instructions for form 1040x Entertainment expenses. Instructions for form 1040x   You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. Instructions for form 1040x In most cases, you can deduct only 50% of these expenses. Instructions for form 1040x   The following are examples of entertainment expenses. Instructions for form 1040x Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events. Instructions for form 1040x Providing meals, a hotel suite, or a car to business customers or their families. Instructions for form 1040x To be deductible, the expenses must meet the rules listed in Table 8-1. Instructions for form 1040x For details about these rules, see Publication 463. Instructions for form 1040x Reimbursing your employees for expenses. Instructions for form 1040x   You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. Instructions for form 1040x The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Instructions for form 1040x For details, see chapter 11 in Publication 535. Instructions for form 1040x That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Instructions for form 1040x Business Use of Your Home To deduct expenses related to the part of your home used for business, you must meet specific requirements. Instructions for form 1040x Even then, your deduction may be limited. Instructions for form 1040x To qualify to claim expenses for business use of your home, you must meet the following tests. Instructions for form 1040x Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use , later), Regular, For your business, and The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your business, or A separate structure (not attached to your home) you use in connection with your business. Instructions for form 1040x Exclusive use. Instructions for form 1040x   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Instructions for form 1040x The area used for business can be a room or other separately identifiable space. Instructions for form 1040x The space does not need to be marked off by a permanent partition. Instructions for form 1040x   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Instructions for form 1040x Example. Instructions for form 1040x You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Instructions for form 1040x Your family also uses the den for recreation. Instructions for form 1040x The den is not used exclusively in your profession, so you cannot claim a business deduction for its use. Instructions for form 1040x Exceptions to exclusive use. Instructions for form 1040x   You do not have to meet the exclusive use test if you use part of your home in either of the following ways. Instructions for form 1040x For the storage of inventory or product samples. Instructions for form 1040x As a daycare facility. Instructions for form 1040x For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Instructions for form 1040x Regular use. Instructions for form 1040x   To qualify under the regular use test, you must use a specific area of your home for business on a continuing basis. Instructions for form 1040x You do not meet the test if your business use of the area is only occasional or incidental, even if you do not use that area for any other purpose. Instructions for form 1040x Principal place of business. Instructions for form 1040x   You can have more than one business location, including your home, for a single trade or business. Instructions for form 1040x To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that business. Instructions for form 1040x To determine your principal place of business, you must consider all the facts and circumstances. Instructions for form 1040x   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Instructions for form 1040x You use it exclusively and regularly for administrative or management activities of your business. Instructions for form 1040x You have no other fixed location where you conduct substantial administrative or management activities of your business. Instructions for form 1040x   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Instructions for form 1040x The relative importance of the activities performed at each location. Instructions for form 1040x If the relative importance factor does not determine your principal place of business, you can also consider the time spent at each location. Instructions for form 1040x   If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Instructions for form 1040x However, for other ways to qualify to deduct home office expenses, see Publication 587. Instructions for form 1040x Deduction limit. Instructions for form 1040x   If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. Instructions for form 1040x If your gross income from the business use is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. Instructions for form 1040x   Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation (with depreciation taken last), allocable to the business is limited to the gross income from the business use of your home minus the sum of the following. Instructions for form 1040x The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). Instructions for form 1040x The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. Instructions for form 1040x Do not include in (2) above your deduction for one-half of your self-employment tax. Instructions for form 1040x   Use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Instructions for form 1040x New simplified method. Instructions for form 1040x    The IRS now provides a simplified method to determine your expenses for business use of your home. Instructions for form 1040x The simplified method is an alternative to calculating and substantiating actual expenses. Instructions for form 1040x In most cases, you will figure your deduction by multiplying $5 by the area of your home used for a qualified business use. Instructions for form 1040x The area you use to figure your deduction is limited to 300 square feet. Instructions for form 1040x For more information, see the Instructions for Schedule C. Instructions for form 1040x More information. Instructions for form 1040x   For more information on deducting expenses for the business use of your home, see Publication 587. Instructions for form 1040x Other Expenses You Can Deduct You may also be able to deduct the following expenses. Instructions for form 1040x See Publication 535 to find out whether you can deduct them. Instructions for form 1040x Advertising. Instructions for form 1040x Bank fees. Instructions for form 1040x Donations to business organizations. Instructions for form 1040x Education expenses. Instructions for form 1040x Energy efficient commercial buildings deduction expenses. Instructions for form 1040x Impairment-related expenses. Instructions for form 1040x Interview expense allowances. Instructions for form 1040x Licenses and regulatory fees. Instructions for form 1040x Moving machinery. Instructions for form 1040x Outplacement services. Instructions for form 1040x Penalties and fines you pay for late performance or nonperformance of a contract. Instructions for form 1040x Repairs that keep your property in a normal efficient operating condition. Instructions for form 1040x Repayments of income. Instructions for form 1040x Subscriptions to trade or professional publications. Instructions for form 1040x Supplies and materials. Instructions for form 1040x Utilities. Instructions for form 1040x Expenses You Cannot Deduct You usually cannot deduct the following as business expenses. Instructions for form 1040x For more information, see Publication 535. Instructions for form 1040x Bribes and kickbacks. Instructions for form 1040x Charitable contributions. Instructions for form 1040x Demolition expenses or losses. Instructions for form 1040x Dues to business, social, athletic, luncheon, sporting, airline, and hotel clubs. Instructions for form 1040x Lobbying expenses. Instructions for form 1040x Penalties and fines you pay to a governmental agency or instrumentality because you broke the law. Instructions for form 1040x Personal, living, and family expenses. Instructions for form 1040x Political contributions. Instructions for form 1040x Repairs that add to the value of your property or significantly increase its life. Instructions for form 1040x Prev  Up  Next   Home   More Online Publications
Español

Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Rhode Island Department of the Attorney General

Website: Rhode Island Department of the Attorney General

Address: Rhode Island Department of the Attorney General

Consumer Protection Unit

150 S. Main St.
Providence, RI 02903

Phone Number: 401-274-4400

Back to Top

Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Business Regulation

Website: Department of Business Regulation

Address: Department of Business Regulation
Division of Banking
1511 Pontiac Ave.
Bldg. 68-2
Cranston, RI 02920

Phone Number: 401-462-9500

Back to Top

Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Business Regulation

Website: Department of Business Regulation

Address: Department of Business Regulation
Insurance Division
1511 Pontiac Ave.
Bldg. 69-2
Cranston, RI 02920

Phone Number: 401-462-9520

Back to Top

Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Business Regulation

Website: Department of Business Regulation

Address: Department of Business Regulation
Securities Division
1511 Pontiac Ave.
Cranston, RI 02920

Phone Number: 401-462-9527

Back to Top

Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Utilities Commission

Website: Public Utilities Commission

Address: Public Utilities Commission
Consumer Section
89 Jefferson Blvd.
Warwick, RI 02888

Phone Number: 401-780-9700

Back to Top

The Instructions For Form 1040x

Instructions for form 1040x 2. Instructions for form 1040x   Fuel Tax Credits and Refunds Table of Contents Gasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Instructions for form 1040x Providing information. Instructions for form 1040x Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Instructions for form 1040x Fuel used between airfield and farm. Instructions for form 1040x Fuel not used for farming. Instructions for form 1040x Vehicles not considered highway vehicles. Instructions for form 1040x Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Federal excise taxes are imposed on certain fuels as discussed in chapter 1. Instructions for form 1040x This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. Instructions for form 1040x Information on the refund of second tax is included. Instructions for form 1040x This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits. Instructions for form 1040x Information on how to make a claim for credit or refund is included in this chapter and in the instructions for: Form 720, Form 4136, and Form 8849. Instructions for form 1040x Exported taxable fuel. Instructions for form 1040x   The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. Instructions for form 1040x Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Instructions for form 1040x Proof of exportation includes: A copy of the export bill of lading issued by the delivering carrier, A certificate by the agent or representative of the export carrier showing actual exportation of the fuel, A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or A statement of the foreign consignee showing receipt of the fuel. Instructions for form 1040x Gasoline and Aviation Gasoline Ultimate Purchasers. Instructions for form 1040x   The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Instructions for form 1040x On a farm for farming purposes (credit only). Instructions for form 1040x Off-highway business use. Instructions for form 1040x Export. Instructions for form 1040x In a boat engaged in commercial fishing. Instructions for form 1040x In certain intercity and local buses. Instructions for form 1040x In a school bus. Instructions for form 1040x Exclusive use by a qualified blood collector organization. Instructions for form 1040x In a highway vehicle owned by the United States that is not used on a highway. Instructions for form 1040x Exclusive use by a nonprofit educational organization (see Sales by registered ultimate vendors and Credit Card Purchases, later). Instructions for form 1040x Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit Card Purchases, later). Instructions for form 1040x In an aircraft or vehicle owned by an aircraft museum. Instructions for form 1040x   The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser. Instructions for form 1040x On a farm for farming purposes (credit only). Instructions for form 1040x Export. Instructions for form 1040x In foreign trade. Instructions for form 1040x Certain helicopter and fixed-wing air ambulance uses. Instructions for form 1040x In commercial aviation (other than foreign trade). Instructions for form 1040x Exclusive use by a qualified blood collector organization. Instructions for form 1040x Exclusive use by a nonprofit education organization (see Sales by registered ultimate vendors and Credit card purchases, later). Instructions for form 1040x Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit and purchases, later). Instructions for form 1040x In an aircraft owned by an aircraft museum. Instructions for form 1040x In military aircraft. Instructions for form 1040x Claims by persons who paid the tax to the government. Instructions for form 1040x   Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. Instructions for form 1040x See Filing Claims, later. Instructions for form 1040x Sales by registered ultimate vendors. Instructions for form 1040x   This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card. Instructions for form 1040x A state or local government for its exclusive use (including essential government use by an Indian tribal government). Instructions for form 1040x A nonprofit educational organization for its exclusive use. Instructions for form 1040x   The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. Instructions for form 1040x A sample certificate is included as Model Certificate M in the Appendix. Instructions for form 1040x The registered ultimate vendor must have the certificate at the time the credit or refund is claimed. Instructions for form 1040x   The ultimate vendor must be registered by the IRS. Instructions for form 1040x See Registration Requirements, earlier. Instructions for form 1040x Credit card purchases. Instructions for form 1040x   If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the gasoline or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Instructions for form 1040x   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Instructions for form 1040x How to make the claim. Instructions for form 1040x   If the claim is made by the credit card issuer, see Schedule C  (Form 720) or Schedule 8 (Form 8849). Instructions for form 1040x Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier. Instructions for form 1040x Ultimate purchasers. Instructions for form 1040x   The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Instructions for form 1040x On a farm for farming purposes. Instructions for form 1040x Off-highway business use. Instructions for form 1040x Export. Instructions for form 1040x In a qualified local bus. Instructions for form 1040x In a school bus. Instructions for form 1040x Other than as a fuel in a propulsion engine of a diesel-powered highway vehicle (such as home heating oil). Instructions for form 1040x Exclusive use by a qualified blood collector organization. Instructions for form 1040x In a highway vehicle owned by the United States that is not used on a highway. Instructions for form 1040x Exclusive use by a nonprofit educational organization (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Instructions for form 1040x Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Instructions for form 1040x In a vehicle owned by an aircraft museum. Instructions for form 1040x As a fuel in a propulsion engine of a diesel-powered train. Instructions for form 1040x Sales by Registered Ultimate Vendors The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only. Instructions for form 1040x Undyed diesel fuel or undyed kerosene sold for the exclusive use by a state or local government (if credit card rules (defined later) do not apply), Undyed kerosene sold from a blocked pump (defined below), or Undyed diesel fuel or undyed kerosene used in certain intercity and local buses, only if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Instructions for form 1040x Registered ultimate vendor (state use). Instructions for form 1040x   This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Instructions for form 1040x The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. Instructions for form 1040x The ultimate vendor must be registered by the IRS. Instructions for form 1040x See Registration Requirements, earlier. Instructions for form 1040x Registered ultimate vendor (blocked pump). Instructions for form 1040x   This is an ultimate vendor that sells undyed kerosene from a blocked pump. Instructions for form 1040x   A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner. Instructions for form 1040x Blocked pump. Instructions for form 1040x   A blocked pump is a fuel pump that meets all the following requirements. Instructions for form 1040x It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use. Instructions for form 1040x It is at a fixed location. Instructions for form 1040x It is identified with a legible and conspicuous notice stating, “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY. Instructions for form 1040x ” It meets either of the following conditions. Instructions for form 1040x It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train. Instructions for form 1040x It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train. Instructions for form 1040x Registered ultimate vendor (certain intercity and local buses). Instructions for form 1040x   This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses. Instructions for form 1040x   The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Instructions for form 1040x A sample waiver is included as Model Waiver N in the Appendix. Instructions for form 1040x The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Instructions for form 1040x Credit Card Purchases. Instructions for form 1040x   If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the diesel fuel or kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Instructions for form 1040x   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Instructions for form 1040x Diesel-Water Fuel Emulsion A claim for credit or refund may be made for the nontaxable use of a diesel-water fuel emulsion and for undyed diesel fuel used to produce a diesel-water fuel emulsion. Instructions for form 1040x The claim rate for nontaxable use of a diesel-water fuel emulsion taxed at $. Instructions for form 1040x 198 per gallon is $. Instructions for form 1040x 197 (if exported, the claim rate is $. Instructions for form 1040x 198). Instructions for form 1040x The following are the nontaxable uses for a diesel-water fuel emulsion for which a credit or refund may be allowable to an ultimate purchaser. Instructions for form 1040x On a farm for farming purposes. Instructions for form 1040x Off-highway business use. Instructions for form 1040x Export. Instructions for form 1040x In a qualified local bus. Instructions for form 1040x In a school bus. Instructions for form 1040x Other than as fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway use). Instructions for form 1040x Exclusive use by a qualified blood collector organization. Instructions for form 1040x In a highway vehicle owned by the United States that is not used on a highway. Instructions for form 1040x Exclusive use by a nonprofit educational organization. Instructions for form 1040x Exclusive use by a state, political subdivision of a state, or the District of Columbia. Instructions for form 1040x In an aircraft or vehicle owned by an aircraft museum. Instructions for form 1040x Blender claims. Instructions for form 1040x   The claim rate for undyed diesel fuel taxed at $. Instructions for form 1040x 244 and used to produce a diesel-water fuel emulsion is $. Instructions for form 1040x 046 per gallon of diesel fuel so used. Instructions for form 1040x The blender must be registered by the IRS in order to make the claim. Instructions for form 1040x The blender must attach a statement to the claim certifying that: The diesel-water fuel emulsion contains at least 14% water, The emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003, Undyed diesel fuel taxed at $. Instructions for form 1040x 244 was used to produce the diesel-water fuel emulsion, and The diesel-water fuel emulsion was used or sold for use in the blender's trade or business. Instructions for form 1040x Kerosene for Use in Aviation Ultimate purchasers. Instructions for form 1040x   Ultimate purchasers of kerosene used in certain aviation uses may make a claim if the rate of tax on their use is less than the rate of tax that was charged on the kerosene. Instructions for form 1040x   The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) is eligible to make a claim if the ultimate purchaser certifies that the right to make the claim has not been waived. Instructions for form 1040x Generally, the ultimate purchaser is the aircraft operator. Instructions for form 1040x   The following are the nontaxable uses of kerosene used in noncommercial aviation for which a credit or refund may be allowable to the ultimate purchaser. Instructions for form 1040x On a farm for farming purposes. Instructions for form 1040x Certain helicopter and fixed-wing aircraft uses. Instructions for form 1040x Exclusive use by a qualified blood collector organization. Instructions for form 1040x Exclusive use by a nonprofit educational organization. Instructions for form 1040x In an aircraft owned by an aircraft museum. Instructions for form 1040x In military aircraft. Instructions for form 1040x Kerosene for use partly in commercial aviation and partly in nonexempt, noncommercial aviation. Instructions for form 1040x   If the fuel is used partly for use in commercial aviation and partly for use in nonexempt, noncommercial aviation, the operator may identify, either at the time of purchase or after the kerosene has been used, the amount that will be (or has been) used in commercial aviation. Instructions for form 1040x At the same time, the operator would either make the claim or waive the right to make the claim for credit or refund of the kerosene for use in commercial and nonexempt, noncommercial aviation. Instructions for form 1040x   If the operator does not identify the amount of kerosene that will be (or has been) used in commercial aviation, the operator may provide a certificate to the ultimate vendor similar to Model Certificate Q in the Appendix. Instructions for form 1040x For kerosene purchased with the certificate, used in commercial aviation, and taxed at $. Instructions for form 1040x 244 per gallon, use of the certificate will be treated as a waiver of the right to claim a credit or refund for the $. Instructions for form 1040x 025 per gallon part of the tax. Instructions for form 1040x The ultimate vendor may make this claim. Instructions for form 1040x The operator may make a claim for the $. Instructions for form 1040x 175 tax per gallon of the kerosene, but cannot waive the right to make the claim for the $. Instructions for form 1040x 175 tax per gallon. Instructions for form 1040x Sales by Registered Ultimate Vendors Kerosene for use in commercial aviation or noncommercial aviation. Instructions for form 1040x   The registered ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may make this claim if the ultimate purchaser waives its right to the credit or payment by providing the registered ultimate vendor with a waiver. Instructions for form 1040x A sample waiver is included as Model Waiver L in the Appendix. Instructions for form 1040x The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Instructions for form 1040x   Noncommercial aviation means any use of an aircraft not described as commercial aviation. Instructions for form 1040x For the definition of commercial aviation, see Commercial aviation on page 11. Instructions for form 1040x Kerosene for use in nonexempt, noncommercial aviation. Instructions for form 1040x   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in nonexempt, noncommercial aviation. Instructions for form 1040x The ultimate vendor must be registered by the IRS (activity letter UA) and have the required certificate from the ultimate purchaser. Instructions for form 1040x A sample certificate is included as Model Certificate Q in the Appendix. Instructions for form 1040x The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Instructions for form 1040x Kerosene for use in aviation by a state or local government. Instructions for form 1040x   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in aviation to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Instructions for form 1040x The kerosene for use in aviation must be purchased by the state without the use of a credit card in order for the ultimate vendor to make the claim. Instructions for form 1040x The ultimate vendor must be registered by the IRS (activity letter UV) and have the required certificate from the ultimate purchaser. Instructions for form 1040x A sample certificate is included as Model Certificate P in the Appendix. Instructions for form 1040x The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Instructions for form 1040x Credit card purchases. Instructions for form 1040x   If taxed kerosene for use in aviation is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Instructions for form 1040x   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Instructions for form 1040x Other Fuels (Including Alternative Fuels) Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. Instructions for form 1040x While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. Instructions for form 1040x The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser. Instructions for form 1040x On a farm for farming purposes. Instructions for form 1040x Off-highway business use. Instructions for form 1040x In a boat engaged in commercial fishing. Instructions for form 1040x In certain intercity and local buses. Instructions for form 1040x In a school bus. Instructions for form 1040x In a qualified local bus. Instructions for form 1040x Exclusive use by a qualified blood collector organization. Instructions for form 1040x Exclusive use by a nonprofit educational organization. Instructions for form 1040x Exclusive use by a state, political subdivision of a state, or the District of Columbia. Instructions for form 1040x In an aircraft or vehicle owned by an aircraft museum. Instructions for form 1040x Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation. Instructions for form 1040x See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit, later. Instructions for form 1040x Refunds of Second Tax The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. Instructions for form 1040x This is in addition to all other taxes imposed on the sale or use of the fuel. Instructions for form 1040x The section 4081(e) refund (discussed below) cannot be claimed. Instructions for form 1040x If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund (without interest) of that tax if certain conditions and reporting requirements are met. Instructions for form 1040x No credit against any tax is allowed for this tax. Instructions for form 1040x For information about taxable events, see the discussions under Gasoline, Diesel Fuel and Kerosene and Kerosene for Use in Aviation in chapter 1. Instructions for form 1040x Conditions to allowance of refund. Instructions for form 1040x   A claim for refund of the tax is allowed only if all the following conditions are met. Instructions for form 1040x A tax on the fuel was paid to the government and not credited or refunded (the “first tax”). Instructions for form 1040x After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”). Instructions for form 1040x The person that paid the second tax filed a timely claim for refund containing the information required (see Refund claim, later). Instructions for form 1040x The person that paid the first tax has met the reporting requirements, discussed next. Instructions for form 1040x Reporting requirements. Instructions for form 1040x   Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. Instructions for form 1040x A model first taxpayer's report is shown in the Appendix as Model Certificate B. Instructions for form 1040x The report must contain all information needed to complete the model. Instructions for form 1040x   By the due date for filing the Form 720, you must also send a separate copy of the report to the following address. Instructions for form 1040x Department of the Treasury Internal Revenue Service  Cincinnati, OH 45999-0555 Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy. Instructions for form 1040x Optional reporting. Instructions for form 1040x   A first taxpayer's report is not required for the tax imposed on: Removal at a terminal rack, Nonbulk entries into the United States, and Removals or sales by blenders. Instructions for form 1040x However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but is not required to) file a first taxpayer's report. Instructions for form 1040x Providing information. Instructions for form 1040x   The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer is not the owner at that time. Instructions for form 1040x If an optional report is filed, a copy should (but is not required to) be given to the buyer or owner. Instructions for form 1040x   A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. Instructions for form 1040x If the later sale is outside the bulk transfer/terminal system and that person expects that another tax will be imposed, that person should (but is not required to) give the copy and the statement to the buyer. Instructions for form 1040x A model statement of subsequent seller is shown in the Appendix as Model Certificate A. Instructions for form 1040x The statement must contain all information necessary to complete the model. Instructions for form 1040x   If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. Instructions for form 1040x Each buyer must be given a copy of the report. Instructions for form 1040x Refund claim. Instructions for form 1040x   You must have filed Form 720 and paid the second tax before you file for a refund of that tax. Instructions for form 1040x You must make your claim for refund on Form 8849. Instructions for form 1040x Complete Schedule 5 (Form 8849) and attach it to your Form 8849. Instructions for form 1040x Do not include this claim with a claim under another tax provision. Instructions for form 1040x You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. Instructions for form 1040x You must submit the following information with your claim. Instructions for form 1040x A copy of the first taxpayer's report (discussed earlier). Instructions for form 1040x A copy of the statement of subsequent seller if the fuel was bought from someone other than the first taxpayer. Instructions for form 1040x Definitions of Nontaxable Uses This section provides definitions of the terms used in Table 2-1 for nontaxable uses. Instructions for form 1040x If applicable, the type of use number from Table 2-1 is indicated in each heading. Instructions for form 1040x Type of use table. Instructions for form 1040x   The first column of the table is the number you enter on Form 4136, Form 8849, or Schedule C (Form 720) for that type of use. Instructions for form 1040x For type of use 2, the mobile machinery parenthetical applies only to Form 8849 and Form 720. Instructions for form 1040x Table 2-1. Instructions for form 1040x Type of Use Table No. Instructions for form 1040x Type of Use 1 On a farm for farming purposes 2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) 3 Export 4 In a boat engaged in commercial fishing 5 In certain intercity and local buses 6 In a qualified local bus 7 In a bus transporting students and employees of schools (school buses) 8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) 9 In foreign trade 10 Certain helicopter and fixed-wing aircraft uses 11 Exclusive use by a qualified blood collector organization 12 In a highway vehicle owned by the United States that is not used on a highway 13 Exclusive use by a nonprofit educational organization 14 Exclusive use by a state, political subdivision of a state, or the District of Columbia 15 In an aircraft or vehicle owned by an aircraft museum 16 In military aircraft On a farm for farming purposes (No. Instructions for form 1040x 1). Instructions for form 1040x   On a farm for farming purposes means fuel used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Instructions for form 1040x Farm. Instructions for form 1040x   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms; orchards; plantations; ranches; nurseries; ranges; and feed yards for fattening cattle. Instructions for form 1040x It also includes structures such as greenhouses used primarily for the raising of agricultural or horticultural commodities. Instructions for form 1040x A fish farm is an area where fish are grown or raised — not merely caught or harvested. Instructions for form 1040x Farming purposes. Instructions for form 1040x   As an owner, tenant, or operator, you use fuel on a farm for farming purposes if you use it in any of the following ways. Instructions for form 1040x To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Instructions for form 1040x To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Instructions for form 1040x To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Instructions for form 1040x To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Instructions for form 1040x For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Instructions for form 1040x Commodity means a single raw product. Instructions for form 1040x For example, apples and peaches are two separate commodities. Instructions for form 1040x To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if the planting, etc. Instructions for form 1040x , is incidental to your farming operations. Instructions for form 1040x Your tree operations will be incidental only if they are minor in nature when compared to the total farming operations. Instructions for form 1040x   If any other person, such as a neighbor or custom operator, performs a service for you on your farm for any of the purposes listed in (1) or (2), you are considered to be the ultimate purchaser that used the fuel on a farm for farming purposes. Instructions for form 1040x However, see Custom application of fertilizer and pesticide, next. Instructions for form 1040x   If doubt exists whether the owner, the tenant, or the operator of the farm bought the fuel, determine who bore the cost of the fuel. Instructions for form 1040x For example, if the owner of a farm and the tenant equally share the cost of gasoline that is used on a farm for farming purposes, each can claim a credit for the tax on one-half the fuel used. Instructions for form 1040x Custom application of fertilizer and pesticide. Instructions for form 1040x   Fuel used on a farm for farming purposes includes fuel used in the application of fertilizer, pesticides, or other substances, including aerial applications. Instructions for form 1040x Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Instructions for form 1040x For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Instructions for form 1040x For kerosene used in aviation, the ultimate purchaser may make the claim or waive their right to make the claim to the registered ultimate vendor. Instructions for form 1040x Fuel used between airfield and farm. Instructions for form 1040x   Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as a farming purpose. Instructions for form 1040x Fuel not used for farming. Instructions for form 1040x   Fuel is not used on a farm for farming purposes if it is used in any of the following ways. Instructions for form 1040x Off the farm, such as on the highway or in noncommercial aviation, other than fuel used between the airfield and farm described above, even if the fuel is used in transporting livestock, feed, crops, or equipment. Instructions for form 1040x For personal use, such as mowing the lawn. Instructions for form 1040x In processing, packaging, freezing, or canning operations. Instructions for form 1040x In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Instructions for form 1040x Off-highway business use (No. Instructions for form 1040x 2). Instructions for form 1040x   Off-highway business use means fuel used in a trade or business or in an income-producing activity other than as a fuel in a highway vehicle registered or required to be registered for use on public highways. Instructions for form 1040x The terms “highway vehicle,” “public highway,” and “registered” are defined below. Instructions for form 1040x Do not consider any use in a boat as an off-highway business use. Instructions for form 1040x   Off-highway business use includes fuels used in any of the following ways. Instructions for form 1040x In stationary machines such as generators, compressors, power saws, and similar equipment. Instructions for form 1040x For cleaning purposes. Instructions for form 1040x In forklift trucks, bulldozers, and earthmovers. Instructions for form 1040x   Generally, this use does not include nonbusiness use of fuel, such as use by minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Instructions for form 1040x Example. Instructions for form 1040x Caroline owns a landscaping business. Instructions for form 1040x She uses power lawn mowers and chain saws in her business. Instructions for form 1040x The gasoline used in the power lawn mowers and chain saws qualifies as fuel used in an off-highway business use. Instructions for form 1040x The gasoline used in her personal lawn mower at home does not qualify. Instructions for form 1040x Highway vehicle. Instructions for form 1040x   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Instructions for form 1040x Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Instructions for form 1040x A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Instructions for form 1040x A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Instructions for form 1040x A special kind of cargo, goods, supplies, or materials. Instructions for form 1040x Some off-highway task unrelated to highway transportation, except as discussed next. Instructions for form 1040x Vehicles not considered highway vehicles. Instructions for form 1040x   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the credit or refund of fuel taxes. Instructions for form 1040x Specially designed mobile machinery for nontransportation functions. Instructions for form 1040x A self-propelled vehicle is not a highway vehicle if all the following apply. Instructions for form 1040x The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Instructions for form 1040x The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Instructions for form 1040x The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Instructions for form 1040x The vehicle must have traveled less than 7,500 miles on public highways during the taxable year. Instructions for form 1040x Vehicles specially designed for off-highway transportation. Instructions for form 1040x A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. Instructions for form 1040x To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Instructions for form 1040x It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Instructions for form 1040x Nontransportation trailers and semitrailers. Instructions for form 1040x A trailer or semi-trailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Instructions for form 1040x For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Instructions for form 1040x Public highway. Instructions for form 1040x   A public highway includes any road in the United States that is not a private roadway. Instructions for form 1040x This includes federal, state, county, and city roads and streets. Instructions for form 1040x Registered. Instructions for form 1040x   A vehicle is considered registered when it is registered or required to be registered for highway use under the law of any state, the District of Columbia, or any foreign country in which it is operated or situated. Instructions for form 1040x Any highway vehicle operated under a dealer's tag, license, or permit is considered registered. Instructions for form 1040x A highway vehicle is not considered registered solely because a special permit allows the vehicle to be operated at particular times and under specified conditions. Instructions for form 1040x Dual use of propulsion motor. Instructions for form 1040x   Off-highway business use does not include any fuel used in the propulsion motor of a registered highway vehicle even though that motor also operates special equipment by means of a power take-off or power transfer. Instructions for form 1040x It does not matter if the special equipment is mounted on the vehicle. Instructions for form 1040x Example. Instructions for form 1040x The motor of a registered concrete-mixer truck operates both the engine and the mixing unit by means of a power take-off. Instructions for form 1040x The fuel used in the motor to run the mixer is not off-highway business use. Instructions for form 1040x Use in separate motor. Instructions for form 1040x   Off-highway business use includes fuel used in a separate motor to operate special equipment, such as a refrigeration unit, pump, generator, or mixing unit. Instructions for form 1040x If you draw fuel from the same tank that supplies fuel to the propulsion motor, you must figure the quantity used in the separate motor operating the special equipment. Instructions for form 1040x You may make a reasonable estimate based on your operating experience and supported by your records. Instructions for form 1040x   You can use devices that measure the miles the vehicle has traveled (such as hubometers) to figure the gallons of fuel used to propel the vehicle. Instructions for form 1040x Add to this amount the fuel consumed while idling or warming up the motor before propelling the vehicle. Instructions for form 1040x The difference between your total fuel used and the fuel used to propel the vehicle is the fuel used in the separate motor. Instructions for form 1040x Example. Instructions for form 1040x Hazel owns a refrigerated truck. Instructions for form 1040x It has a separate motor for the refrigeration unit. Instructions for form 1040x The same tank supplies both motors. Instructions for form 1040x Using the truck's hubometer, Hazel figures that 90% of the fuel was used to propel the truck. Instructions for form 1040x Therefore, 10% of the fuel is used in an off-highway business use. Instructions for form 1040x Fuel lost or destroyed. Instructions for form 1040x   You cannot treat fuel lost or destroyed through spillage, fire, or other casualty as fuel used in an off-highway business use. Instructions for form 1040x Export (No. Instructions for form 1040x 3). Instructions for form 1040x   Export means fuel transported from the United States with the intention that the fuel remain in a foreign country or possession of the United States. Instructions for form 1040x Fuel is not exported if it is in the fuel supply tank of a vehicle or aircraft. Instructions for form 1040x In a boat engaged in commercial fishing (No. Instructions for form 1040x 4). Instructions for form 1040x   In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. Instructions for form 1040x They include boats used in both fresh and salt water fishing. Instructions for form 1040x They do not include boats used for both sport fishing and commercial fishing on the same trip. Instructions for form 1040x In certain intercity and local buses (No. Instructions for form 1040x 5). Instructions for form 1040x   In certain intercity and local buses means fuel used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Instructions for form 1040x The bus must be engaged in one of the following activities. Instructions for form 1040x Scheduled transportation along regular routes. Instructions for form 1040x Nonscheduled operations if the seating capacity of the bus is at least 20 adults, not including the driver. Instructions for form 1040x Vans and similar vehicles used for van-pooling or taxi service do not qualify. Instructions for form 1040x Available to the general public. Instructions for form 1040x   This means you offer service to more than a limited number of persons or organizations. Instructions for form 1040x If a bus operator normally provides charter operations through travel agencies but has buses available for chartering by the general public, this service is available to the general public. Instructions for form 1040x A bus does not qualify when its operator uses it to provide exclusive services to only one person, group, or organization. Instructions for form 1040x Also, intercity bus transportation does not include transporting students and employees of schools or intercity transportation in a qualified local bus. Instructions for form 1040x In a qualified local bus (No. Instructions for form 1040x 6). Instructions for form 1040x   In a qualified local bus means fuel used in a bus meeting all the following requirements. Instructions for form 1040x It is engaged in furnishing (for compensation) intracity passenger land transportation available to the general public. Instructions for form 1040x It operates along scheduled, regular routes. Instructions for form 1040x It has a seating capacity of at least 20 adults (excluding the driver). Instructions for form 1040x It is under contract with (or is receiving more than a nominal subsidy from) any state or local government to furnish the transportation. Instructions for form 1040x Intracity passenger land transportation. Instructions for form 1040x   This is the land transportation of passengers between points located within the same metropolitan area. Instructions for form 1040x It includes transportation along routes that cross state, city, or county boundaries if the routes remain within the metropolitan area. Instructions for form 1040x Under contract. Instructions for form 1040x   A bus is under contract with a state or local government only if the contract imposes a bona fide obligation on the bus operator to furnish the transportation. Instructions for form 1040x More than a nominal subsidy. Instructions for form 1040x   A subsidy is more than nominal if it is reasonably expected to exceed an amount equal to 3 cents multiplied by the number of gallons of fuel used in buses on subsidized routes. Instructions for form 1040x A company that operates its buses along subsidized and unsubsidized intracity routes may consider its buses qualified local buses only when the buses are used on the subsidized intracity routes. Instructions for form 1040x In a school bus (No. Instructions for form 1040x 7). Instructions for form 1040x   In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools. Instructions for form 1040x A school is an educational organization with a regular faculty and curriculum and a regularly enrolled body of students who attend the place where the educational activities occur. Instructions for form 1040x For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. Instructions for form 1040x 8). Instructions for form 1040x   Diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train (not including off-highway business use) means undyed diesel fuel and undyed kerosene used: For home heating, lighting, and cooking; In boats; In stationary machines, such as generators and compressors; For cleaning purposes; or In minibikes and snowmobiles. Instructions for form 1040x In foreign trade (No. Instructions for form 1040x 9). Instructions for form 1040x   In foreign trade means fuel used in civil aircraft employed in foreign trade or trade between the United States and any of its possessions. Instructions for form 1040x The term trade includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. Instructions for form 1040x In the case of aircraft registered in a foreign country, the country must allow reciprocal benefits for aircraft registered in the United States. Instructions for form 1040x Certain helicopter and fixed-wing aircraft uses (No. Instructions for form 1040x 10). Instructions for form 1040x   Includes: Certain helicopter uses. Instructions for form 1040x   Certain helicopter uses means fuel used by a helicopter for any of the following purposes. Instructions for form 1040x Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Instructions for form 1040x Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Instructions for form 1040x Providing emergency medical transportation. Instructions for form 1040x   During a use described in items (1) and (2), the helicopter must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Instructions for form 1040x For item (1), treat each flight segment as a separate flight. Instructions for form 1040x Fixed-wing aircraft uses. Instructions for form 1040x   Fixed-wing aircraft uses means fuel used by a fixed-wing aircraft for any of the following purposes. Instructions for form 1040x Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Instructions for form 1040x Providing emergency medical transportation. Instructions for form 1040x The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Instructions for form 1040x During a use described in item (1), the aircraft must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Instructions for form 1040x Exclusive use by a qualified blood collector organization (No. Instructions for form 1040x 11). Instructions for form 1040x   Exclusive use by a qualified blood collector organization means fuel used by the qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood. Instructions for form 1040x Qualified blood collector organization. Instructions for form 1040x   A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered by the IRS, and Registered by the Food and Drug Administration to collect blood. Instructions for form 1040x In a highway vehicle owned by the United States that is not used on a highway (No. Instructions for form 1040x 12). Instructions for form 1040x   In a highway vehicle owned by the United States that is not used on a highway means fuel used in a vehicle that was not used on public highways during the period covered by the claim. Instructions for form 1040x This use applies whether or not the vehicle is registered or required to be registered for highway use. Instructions for form 1040x Exclusive use by a nonprofit educational organization (No. Instructions for form 1040x 13). Instructions for form 1040x   Exclusive use by a nonprofit educational organization means fuel used by an organization exempt from income tax under section 501(a) that meets both of the following requirements. Instructions for form 1040x It has a regular faculty and curriculum. Instructions for form 1040x It has a regularly enrolled body of students who attend the place where the instruction normally occurs. Instructions for form 1040x   A nonprofit educational organization also includes a school operated by a church or other organization described in section 501(c)(3) if the school meets the above requirements. Instructions for form 1040x Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. Instructions for form 1040x 14). Instructions for form 1040x   Exclusive use by a state, political subdivision of a state, or the District of Columbia means fuel purchased by the state or local government for its exclusive use. Instructions for form 1040x A state or local government is any state, any political subdivision thereof, or the District of Columbia. Instructions for form 1040x An Indian tribal government is treated as a state only if the fuel is used in an activity that involves the exercise of an essential tribal government function. Instructions for form 1040x Gasoline, diesel fuel, and kerosene used by the American Red Cross is considered to be the use of these fuels by a state. Instructions for form 1040x In an aircraft or vehicle owned by an aircraft museum (No. Instructions for form 1040x 15). Instructions for form 1040x   In an aircraft or vehicle owned by an aircraft museum means fuel used in an aircraft or vehicle that is owned by an organization that meets all the following requirements. Instructions for form 1040x It is exempt from income tax as an organization described in section 501(c)(3). Instructions for form 1040x It is operated as a museum under a state (or District of Columbia) charter. Instructions for form 1040x It is operated exclusively for acquiring, exhibiting, and caring for aircraft of the type used for combat or transport in  World War II. Instructions for form 1040x   The aircraft or vehicle (such as a ground servicing vehicle for aircraft) must be used exclusively for the purposes described in item (3). Instructions for form 1040x In military aircraft (No. Instructions for form 1040x 16). Instructions for form 1040x   In a military aircraft means fuel used in an aircraft owned by the United States or any foreign nation and constituting a part of its armed forces. Instructions for form 1040x In commercial aviation (other than foreign trade). Instructions for form 1040x   See Commercial aviation, earlier, for the definition. Instructions for form 1040x Use in a train. Instructions for form 1040x   Use in a train means fuel used in the propulsion engine of equipment or machinery that rides on rails. Instructions for form 1040x This includes use in a locomotive, work train, switching engine, and track maintenance machine. Instructions for form 1040x Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit For alternative fuel mixtures produced after December 31, 2011, see How to Claim the Credit below. Instructions for form 1040x The section 6426 credit for biodiesel and alternative fuel consists of the biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit. Instructions for form 1040x Biodiesel or renewable diesel mixture credit claimant. Instructions for form 1040x   Claimant produced a biodiesel mixture by mixing biodiesel with diesel fuel. Instructions for form 1040x Claimant produced a renewable diesel mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). Instructions for form 1040x   The person that produced and sold or used the mixture in their trade or business is the only person eligible to make this claim. Instructions for form 1040x The credit is based on the gallons of biodiesel or renewable diesel in the mixture. Instructions for form 1040x Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass. Instructions for form 1040x Claim requirements. Instructions for form 1040x   See the Instructions for Form 720 for the biodiesel or renewable diesel mixture claim requirements. Instructions for form 1040x Alternative fuel credit claimant. Instructions for form 1040x   For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail delivered it into the fuel supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk taxable use in a motor vehicle or motorboat, and received required statement from the buyer, (3) used an alternative fuel (not sold at retail or in bulk as previously described) motor vehicle or motorboat, or (4) sold an alternative fuel used as a fuel in aviation is the only person eligible to make this claim. Instructions for form 1040x Carbon capture requirement. Instructions for form 1040x   A credit for Fischer-Tropsch process liquid fuel derived from coal (including peat) can be claimed only if the fuel is derived from coal produced at a gasification facility that separates and sequesters at least 75% of the facility's total carbon dioxide emissions. Instructions for form 1040x Alternative fuel credit. Instructions for form 1040x   The registered alternative fueler is the person eligible to make the claim. Instructions for form 1040x An alternative fueler is the person liable for tax on alternative fuel under the rules for taxable events for Other Fuels (discussed in chapter 1) or would be liable but for an exemption for nontaxable uses. Instructions for form 1040x An alternative fueler includes a person who sells for use or uses an alternative fuel in aviation. Instructions for form 1040x Alternative fuel mixture credit claimant. Instructions for form 1040x   For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture as a fuel in their trade or business is the only person eligible to make this claim. Instructions for form 1040x The credit is based on the gallons of alternative fuel in the mixture. Instructions for form 1040x An alternative fuel mixture is a mixture of alternative fuel and section 4081 taxable fuel (gasoline, diesel fuel, or kerosene). Instructions for form 1040x Registration. Instructions for form 1040x   You must be registered by the IRS to be eligible to claim the section 6426 fuel credit. Instructions for form 1040x See Registration Requirements in chapter 1. Instructions for form 1040x Credits for fuel provide incentive for United States production. Instructions for form 1040x   The section 6426 fuel credit may not be claimed for alternative fuel that is produced outside the United States for use as a fuel outside the United States. Instructions for form 1040x The United States includes any possession of the United States. Instructions for form 1040x Credit for fuels derived from paper or pulp production. Instructions for form 1040x   Credit for alternative fuels and alternative fuel mixtures for any fuel derived from the production of paper or pulp are not available for fuel sold or used on or after December 31, 2009. Instructions for form 1040x How to Claim the Credit Any biodiesel or renewable diesel mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. Instructions for form 1040x Any excess credit may be claimed on Schedule C (Form 720), Schedule 3 (Form 8849), Form 4136, or Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Instructions for form 1040x See Notice 2005-4 and the Instructions for Form 720 for more information. Instructions for form 1040x Also see Notice 2013-26 on page 984 of I. Instructions for form 1040x R. Instructions for form 1040x B. Instructions for form 1040x 2013-18 at www. Instructions for form 1040x irs. Instructions for form 1040x gov/pub/irs-irbs/irb13-18. Instructions for form 1040x pdf; and see chapter 2, later. Instructions for form 1040x Coordination with income tax credit. Instructions for form 1040x   Only one credit may be taken for any amount of biodiesel or renewable diesel. Instructions for form 1040x If any amount is claimed (or will be claimed) for any amount of biodiesel or renewable diesel on Form 720, Form 8849, or Form 4136, then a claim cannot be made on Form 8864 for that amount of biodiesel or renewable diesel. Instructions for form 1040x   Any alternative fuel credit must first be claimed on Schedule C (Form 720) to reduce your section 4041 taxable fuel liability for alternative fuel and CNG reported on Form 720. Instructions for form 1040x Any excess credit may claimed on Schedule C (Form 720), Schedule 3 (Form 8849), or Form 4136. Instructions for form 1040x   For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit can be claimed on Schedule C (Form 720), not on Form 4136 or Schedule 3 (Form 8849), and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel fuel and kerosene reported on Form 720. Instructions for form 1040x   Calculate the limitation for alternative fuel mixtures separately and enter on Schedule C (Form 720), line 14, only the gallons of mixtures that do not exceed your section 4081 taxable fuel liability. Instructions for form 1040x Filing Claims This section tells you how to make a claim for a credit or refund of excise taxes on fuels. Instructions for form 1040x This section also covers recordkeeping requirements and when to include the credit or refund in your income. Instructions for form 1040x Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849, Form 4136, Schedule C (Form 720), Form 6478, or Form 8864. Instructions for form 1040x In some cases, you will have to attach additional information. Instructions for form 1040x You need to keep records that support your claim for a credit or refund. Instructions for form 1040x Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Instructions for form 1040x Ultimate purchaser. Instructions for form 1040x   Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136, Schedule 1 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Instructions for form 1040x If you are an ultimate purchaser, you must keep the following records. Instructions for form 1040x The number of gallons purchased and used during the period covered by your claim. Instructions for form 1040x The dates of the purchases. Instructions for form 1040x The names and addresses of suppliers and amounts purchased from each in the period covered by your claim. Instructions for form 1040x The nontaxable use for which you used the fuel. Instructions for form 1040x The number of gallons used for each nontaxable use. Instructions for form 1040x It is important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. Instructions for form 1040x If the fuel is exported, you must have proof of exportation. Instructions for form 1040x   For more information about keeping records, see Publication 583, Starting a Business and Keeping Records, or chapter 1 of Publication 17, Your Federal Income Tax for Individuals. Instructions for form 1040x Exceptions. Instructions for form 1040x    Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. Instructions for form 1040x However, see Claims by credit card issuers, later, for an exception. Instructions for form 1040x The ultimate purchaser may not claim a credit or refund as follows. Instructions for form 1040x The ultimate purchaser of gasoline or aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. Instructions for form 1040x A new certificate is required each year or when any information in the current certificate expires. Instructions for form 1040x The ultimate purchaser of kerosene for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver L. Instructions for form 1040x A new waiver is required each year or when any information in the current waiver expires. Instructions for form 1040x The ultimate purchaser of undyed diesel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. Instructions for form 1040x A new waiver is required each year or when any information in the current waiver expires. Instructions for form 1040x The ultimate purchaser of kerosene for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. Instructions for form 1040x A new certificate is required each year or when any information in the current certificate expires. Instructions for form 1040x Registered ultimate vendor. Instructions for form 1040x   Registered ultimate vendors may make claims for certain sales of fuels on Form 4136, Schedule 2 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Instructions for form 1040x If you are a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel. Instructions for form 1040x   To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. Instructions for form 1040x You are required to have a valid certificate or waiver in your possession in order to make the claim. Instructions for form 1040x   In addition, you must have a registration number that has not been revoked or suspended. Instructions for form 1040x See Form 637. Instructions for form 1040x State use. Instructions for form 1040x   To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained below. Instructions for form 1040x If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information. Instructions for form 1040x The name and taxpayer identification number of each person (government unit) that bought the fuel. Instructions for form 1040x The number of gallons sold to each person. Instructions for form 1040x An unexpired certificate from the buyer. Instructions for form 1040x See Model Certificate P in the Appendix. Instructions for form 1040x The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Instructions for form 1040x Nonprofit educational organization and state use. Instructions for form 1040x   To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained later. Instructions for form 1040x If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or local government for its exclusive use, you must keep the following information. Instructions for form 1040x The name and taxpayer identification number of each person (nonprofit educational organization or government unit) that bought the fuel. Instructions for form 1040x The number of gallons sold to each person. Instructions for form 1040x An unexpired certificate from the buyer. Instructions for form 1040x See Model Certificate M in the Appendix. Instructions for form 1040x  The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Instructions for form 1040x Blocked pump. Instructions for form 1040x   To make a claim as an ultimate vendor (blocked pump), you must have a UP registration number. Instructions for form 1040x If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it is locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons. Instructions for form 1040x The date of each sale. Instructions for form 1040x The name and address of the buyer. Instructions for form 1040x The number of gallons sold to that buyer. Instructions for form 1040x Certain intercity and local bus use. Instructions for form 1040x   To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. Instructions for form 1040x You must keep the following information. Instructions for form 1040x The date of each sale. Instructions for form 1040x The name and address of the buyer. Instructions for form 1040x The number of gallons sold to the buyer. Instructions for form 1040x A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Instructions for form 1040x See Model Waiver N in the Appendix. Instructions for form 1040x Kerosene for use in commercial aviation or noncommercial aviation. Instructions for form 1040x   To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. Instructions for form 1040x See Kerosene for use in aviation, earlier, for a list of nontaxable uses. Instructions for form 1040x You must keep the following information. Instructions for form 1040x The date of each sale. Instructions for form 1040x The name and address of the buyer. Instructions for form 1040x The number of gallons sold to the buyer. Instructions for form 1040x A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Instructions for form 1040x See Model Waiver L in the Appendix. Instructions for form 1040x Kerosene for use in nonexempt, noncommercial aviation. Instructions for form 1040x   To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. Instructions for form 1040x You must keep the following information. Instructions for form 1040x The date of each sale. Instructions for form 1040x The name and address of the buyer. Instructions for form 1040x The number of gallons sold to the buyer. Instructions for form 1040x A copy of the certificate signed by the buyer at the time the credit or payment is claimed. Instructions for form 1040x See Model Certificate Q in the Appendix. Instructions for form 1040x Claims by credit card issuers. Instructions for form 1040x   For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. Instructions for form 1040x An exempt user for this purpose is: For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government). Instructions for form 1040x   If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. Instructions for form 1040x However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Instructions for form 1040x   If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. Instructions for form 1040x A state is not allowed to make a claim for these fuels. Instructions for form 1040x However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Instructions for form 1040x   The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim. Instructions for form 1040x The total number of gallons. Instructions for form 1040x Its registration number. Instructions for form 1040x A statement that it has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim. Instructions for form 1040x A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with reimbursement of the tax. Instructions for form 1040x Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false. Instructions for form 1040x Taxpayer identification number. Instructions for form 1040x   To file a claim, you must have a taxpayer identification number. Instructions for form 1040x Your taxpayer identification number can be an: Employer identification number (EIN), Social security number (SSN), or Individual taxpayer identification number (ITIN), if you are an alien individual and do not have and are not eligible to get an SSN. Instructions for form 1040x   If you normally file only a U. Instructions for form 1040x S. Instructions for form 1040x individual income tax return (such as Form 1040 or 1040NR), use your SSN or ITIN. Instructions for form 1040x You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. Instructions for form 1040x To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Instructions for form 1040x   If you operate a business, use your EIN. Instructions for form 1040x If you do not have an EIN, you may apply for one online. Instructions for form 1040x Go to the IRS website at irs. Instructions for form 1040x gov/businesses/small and click on the “Employer ID Numbers (EINs)” link. Instructions for form 1040x You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Instructions for form 1040x Claiming A Refund Generally, you may claim a refund of excise taxes on Form 8849. Instructions for form 1040x Complete and attach to Form 8849 the appropriate Form 8849 schedules. Instructions for form 1040x The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Instructions for form 1040x If you file Form 720, you can use the Schedule C (Form 720) for your refund claims for the quarter. Instructions for form 1040x See the Instructions for Form 720. Instructions for form 1040x Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Schedule C (Form 720) or Form 4136. Instructions for form 1040x The alternative fuel mixture credit must be claimed on Schedule C (Form 720) against your section 4081 taxable fuel liability for gasoline, diesel, and kerosene and any excess is not allowed. Instructions for form 1040x The alternative fuel credit must first be claimed on Schedule C (Form 720) against your section 4041 taxable fuel liability for alternative fuel and CNG. Instructions for form 1040x To the extent the alternative fuel credit exceeds this taxable fuel liability, a payment is allowed and may be claimed as a credit on Schedule C (Form 720), or as an income tax credit on Forms 4136, 6478, or 8864, as applicable. Instructions for form 1040x Only one claim may be made for any particular amount of alternative fuel. Instructions for form 1040x Claiming a Credit on Form 4136 For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit cannot be claimed on Form 4136. Instructions for form 1040x See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2, earlier. Instructions for form 1040x A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. Instructions for form 1040x If you meet certain requirements (discussed earlier), you may be able to make a claim during the year. Instructions for form 1040x Credit only. Instructions for form 1040x   You can claim the following taxes only as a credit on Form 4136. Instructions for form 1040x Tax on fuels used for nontaxable uses if the total for your tax year is less than $750. Instructions for form 1040x Tax on fuel you did not include in any claim for refund previously filed for any quarter of your tax year. Instructions for form 1040x Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways. Instructions for form 1040x Do not claim a credit for any amount for which you have filed a refund claim on Form 8849 or credit on Schedule C (Form 720). Instructions for form 1040x When to file. Instructions for form 1040x   You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim). Instructions for form 1040x You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Instructions for form 1040x Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax. Instructions for form 1040x How to claim a credit. Instructions for form 1040x   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, or farmers' cooperative association. Instructions for form 1040x Individuals. Instructions for form 1040x   You claim the credit on the “Credits from” line of Form 1040. Instructions for form 1040x Also check box b on that line. Instructions for form 1040x If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Instructions for form 1040x Partnerships. Instructions for form 1040x   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Instructions for form 1040x , showing each partner's share of the number of gallons of each fuel sold or used for a non