4 Required Steps to File your IFTA Fuel Taxes

In order to prepare your next IFTA fuel tax return as smooth as possible, follow these 4 steps.

1.  Make sure you have an IFTA license.

This is the first and most basic required piece of information.  If you do not have a license, you need to follow your state’s procedures.  Each state has a different process to get a licnese.  We suggest you search Google for “how to apply for a [Your State] IFTA license”.

2.  Gather your fuel purchased and miles driven per state.

Most companies have a hard time collecting this information.  You need to know how many gallons you purchased and which state they were bought.  You also need to know how many miles were driven in each state. Many trucking companies rely on fuel and mileage tracking by using trip reports.  However, here are a few other suggestions on ways to collect this information.

Fuel:   Look through your fuel cards, credit cards, and paper receipts.  You only need to report gallons purchased in each state.  You do not need to report 0 gallons in states driven in, but where fuel was not purchased.

Miles:  The main source of miles is usually trip reports but you may also find miles from GPS or dispatching software.

Most owner-operators rely on trip reports filled out either daily or per trip.  These are very important to maintain and store.  If you are ever audited, these reports are essential.  If you need an example of a trip log, you can use this Free Trip Report.

3.  Prepare your State IFTA return.

Each quarter, you must prepare you state IFTA fuel tax return.  There are numerous ways to prepare your return.

By Hand:     First off, many companies complete their returns by hand.  If you feel confident in your ability and understanding of the calculations, this is by far the cheapest way to prepare your return, but offers no certainty of accuracy.

Accountant:    Some accountants can prepare your return.  Industry average is around $150 per quarter, and you need to deliver your miles and fuel purchases to them.  This is expensive, but offers a high certainty of accuracy.

Software:    Many companies are now searching for software to provide a cheaper means without sacrificing accuracy.  We hope you look at IFTA Plus, which offers $25 preparation per quarter and a history of accuracy.

4.  Prepare other returns.

If you happen to drive through New York, Kentucky, New Mexico, or Oregon, there is a good chance you must also prepare a separate return for each of these states.

Read more about the New York Highway Use Tax, Kentucky Weight Distance Tax, New Mexico Weight Distance Tax , and the Oregon Highway Use Tax.

As with your State return, IFTA Plus can prepare these returns as well for only $15.

Good luck, and drive safely.