5 Ways to Prepare to Claim Your Excise Tax Refund in 2024

calculating excise tax refund
December 8, 2023 0 Comments

2024 is just around the corner, and the end of the year is the ideal time to start preparing to claim your excise tax refund. A fuel excise tax refund is an often overlooked opportunity that many companies don’t take advantage of simply because they don’t know about the federal fuel tax credit or are too busy taking care of their business. 

However, a fuel excise tax refund can put a large sum of money back into your pocket – and your company – especially if you have never claimed one. If you’re ready to explore your options and see if your business qualifies for a fuel excise tax refund, then the time to prepare is now. That way, you can be on your way towards extra funds before the New Year begins. 

What is Excise Tax? 

Excise tax is unlike other forms of taxes, as it is a tax that is already built into a specific good or service. Examples of excise tax include alcohol, tobacco, airline tickets, and yes – fuel. So, when filling up at the gas pump, you also pay a federal and state-initiated tax. 

The United States federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel, in addition to any state taxes that may be imposed. For example, in Texas, there is an additional tax of 20.0 cents per gallon for diesel and gasoline. On the other hand, in Indiana, the tax is 51.1 cents per gallon for gasoline and 54 cents per gallon for diesel. These small taxes can certainly add up primarily if you routinely use fuel on a day-to-day basis. 

Who Qualifies for the Fuel Tax Credit? 

A fuel excise tax credit may be available for professionals in varying fields. For example, there may be a fuel tax credit for truck drivers, a fuel tax credit for landscapers, and a fuel tax credit for virtually any business that uses fuel in off-the-road applications. 

The key to receiving the credit is that the fuel is not used for transportation alone but to power equipment off the highway. For example, a food service business or a florist may not be able to claim the fuel used to transport deliveries. However, they can claim the fuel needed to refrigerate the truck enroute. A landscaper or construction company can’t claim the fuel used to drive back and forth to a job site, but they can claim the fuel needed to power lawnmowers, bulldozers, generators, and other equipment required for the work at hand. 

Five Ways to Prepare for Claiming Your Excise Tax Refund 

If any of the above scenarios sounds like your business’s operations, you’re ready to take the next steps to secure your biggest refund possible. 

Maintain Accurate Records 

One of the best things a business can do is to keep track of the fuel expenses they incur on a regular basis. Make sure to save those receipts and keep them separate from fuel purchases you may have made for driving to work or other activities that may not be eligible for the fuel tax credit. 

Understand the Claim Process 

Fuel excise tax is an intricate and complicated part of tax law. In addition, various steps and forms that must be considered for the claim process to begin. Review the Internal Revenue Service’s instructions for Form 4136 for insight into how a claim can be made, and the recent revisions that may apply to tax years 2022 and 2023. 

Consult with TiP Excise Tax Professionals 

The best way to get started is to connect with the professional team at TiP Excise. At TiP, our experienced tax professionals can help start a discussion about your business and determine whether or not you qualify for a refund. Many companies are surprised at how much money we can put back into their business. Especially if they have never researched their fuel excise tax credit eligibility. 

Stay Informed About Tax Law Changes 

Tax laws are constantly changing, and this can affect your business in more ways than one.  Especially when it comes to distinctive areas of federal tax guidelines and regulations, like fuel excise tax. Again, our representatives at TiP are standing by to help you navigate these changes. Our team of tax experts can help secure the biggest refund possible now and well into the future. 

Make a Plan for the Use of Refund 

If you suddenly had a windfall of thousands of dollars, how would it best be used?  

Once you have an estimate of your refund, it’s a good time to start planning how those extra funds can help your business. A great starting point for estimating your potential refund is our detailed but simple online fuel tax refund calculator. To get an estimate of your fuel excise tax refund, all you need to do is enter the fuel type, vehicle type, and usage details into the calculator. The tool will then calculate and provide you with an approximate amount that you can expect to receive.   

Ready to learn more? You Can Get the Refund You Deserve for 2024 with TiP Excise  

Make 2024 the year you take a proactive approach to claiming the hard-earned money you deserve.  

At TiP, we’ll take the reins on all of your fuel excise tax preparations and will work our hardest to ensure you receive the largest refund possible. There is no cost to investigate your options. To begin, we need a few details from you about your company to start the process.  

With TiP as your resource for securing your fuel excise tax refund, you can concentrate on the business at hand while we put our extensive expertise to use for you and your company. With no fee, until we’ve secured your refund and up to three years of potential funds you can claim, this is the perfect time to pave the way for a more successful 2024 with TiP Excise at your side.  

Contact us today.