Hello, 2023! It is time for a new year and big plans. However, ringing in the new year means preparing for the 2023 tax season and, that includes receiving your excise tax refund. Ah, the dreaded time of year when people must sit down, file their taxes, and hope for the best return possible (and hopefully not owe any more money, right?!). The only way to maximize your return, is to understand your filings and know what to expect before sending it in.
In fact, most people don’t even consider the excise tax when they file, which is the first mistake. Learn more about what makes you eligible for an excise tax refund. Let’s explore what the excise tax is and how you can receive the best excise tax refund in 2023.
What is an Excise Tax?
Frist, let’s take a look at what is an excise tax and what how it can make a difference for your tax return. An excise tax is a tax on various goods or services that can be imposed on the provider or consumer depending on the tax type. There are many distinctions to this tax, but we will focus on the fuel tax so that you can get credit for federal tax on fuels and maximize your fuel tax refund in 2023. Fuel is considered a various good or service that is both provided by many retailers and bought by many consumers in the United States. However, with the current inflation rates, gas was no exception in 2022, many fuel credits were extended into 2024. Now is the best time to take advantage of them!
Here are some common examples of excise taxes:
- Boat travel
- Airline travel
- Gasoline fuel
- Diesel fuel
Therefore, all the fuel types apply. Excise taxes can be percentages or flat rates, too. This is where that tax knowledge really comes into play. Additionally, you can understand what goods you will be taxed on and their tax rates to determine the best tax break when filing with the IRS.
What are Some Changes in Excise Tax for 2023?
Now that we have got the motors running towards tax preparation, it is also good to note what upcoming changes there are to excise taxes in 2023. So even if you already knew what excise taxes were, there is still something new to learn today.
In 2023, certain states will increase the gas tax to accommodate inflation. There will also be a new excise tax on stock buybacks, adding to what will be considered an excise tax on the list. Other changes include increasing current rates on items already on the list, like marijuana, and increasing corporate minimums.
However, just because changes exist doesn’t mean you still can’t benefit from nice tax refunds, particularly on fuel. Our team of experts have great knowledge in this tax subject, and will help you receive what you deserve. Let’s get to the best part – how to maximize your refund when it comes to the excise tax for fuel.
How Can You Receive a Refund for Excise Tax?
Filing electronically is the preferred method these days, and using tax preparation services can help you identify tax breaks and savings much easier, especially for the fuel tax credit. However, you can still file by paper and get a refund for excise taxes on fuel. Furthermore, there are forms to utilize when claiming excise tax refunds. In order to maximize your payments relative to your savings, it is important to know how much you owe.
If this is your first time looking for this specific refund, you can look at previous years and bundle the savings. Additionally, you can also claim business expenses as a way to maximize your refund on excise taxes. Know your vehicles and your mileage, save your receipts, and plug all the numbers in to make it work. Also, when in doubt, consult a tax professional to help assess your earnings and savings each tax year. TiP Excise is here for you!
What Items and Different Industries Qualify for the Excise Tax Credit?
Excise tax codes and credits vary based on item, industry, state, and more. To navigate this confusing set of terminology and all it entails, we will look at the different items and industries that qualify for the excise tax credit so that you feel better prepared to take on this upcoming tax season. Different industries and types of taxable items within them include:
- Sporting goods
- Diesel fuel
- Car, Trucks
- Passengers versus property/freight
Alcohol and Marijuana
- These are manufactured, sold, and transported in their standalone industries.
The above industries and examples within each all have their own complexities that could justify their own independent blog articles detailing them through and through. The point is that if you utilize these products on a regular basis or own a business that does, then you may be subject to paying an excise tax throughout the year or when you file your return. If you pay the tax, then chances are you can get some of that money back.
Therefore, you can see how much fuel is involved no matter what industry it is being used within. However, you still may need some assistance to get the most refund out of your return, and the best way to do that is to ask for help!
Recover in 2023 with TiP Excise
Whether you are ready to conquer your 2023 tax season and claim your excise tax refunds, or still have lingering questions, TiP Excise has you covered! Most people don’t even know where to begin, which is why we exist. Our professional tax experts will guide you every step of the way and guarantee to achieve best excise tax refund.
The best time to start your tax planning is today. Our team of experts is ready to help you prepare a quality tax return in a professional and supportive manner. No tax return is too big or challenging for us. Your maximum refund awaits – don’t wait to get ready. Contact us now to get started!