What You Need to Know About Fuel Excise Tax Refund

fuel excise tax refund
February 1, 2023 0 Comments

Make 2023 the year you and your business take taxes back by getting the best refund. To do just that, you must first understand the complicated nuances of filing taxes and ensure you are not leaving money on the table when you file. However, you don’t need to worry. Our team of excise tax experts are here to help you maximize your tax refund by claiming the fuel excise tax and more.  

Begin reading to learn more about the excise tax, how to claim it during filing season, and how you can maximize your return just by claiming this one thing (among others). Tax season is a hectic time of year, but the more you know, the easier it will be!

Let’s get started.  

What is the Excise Tax? 

First, let’s discuss the what is the excise tax and how you can benefit from this tax. An excise tax is a tax on goods or services like fuel, tobacco, alcohol, and more. So, if you are a business providing these types of services, then you are likely to pay excise taxes. However, not a lot of people know you can claim this tax refund when you file during tax season.  

Quick Information About Federal Excise Tax  

An excise tax can also be referred to as a federal excise tax. What is the federal excise tax, you ask? It is the same as above, but it is a tax imposed specifically by the federal government on goods that businesses may have to pay and not consumers.  

But, even if you are a consumer, know that higher excise taxes on businesses mean higher consumer prices. Everything is related, which is an important note to remember throughout this process. For now, let’s refocus on the excise tax, specifically for fuel.  

Fuel is one of the largest commodities in America. That is why it helps to know about fuel excise tax recovery and how you can get back significant cash during tax season (for those who can claim fuel as an expense fuel or pay excise taxes on fuel).  

What You Need to Know About Fuel Excise Tax Recovery 

First and foremost, you can claim the excise tax going back up to three years. Sounds too good to be true? Well, we have good news for you today.  If this is the first time hearing about the excise tax, then it is time to recover some money! Let’s get to the fuel tax next.  

Excise Fuel Tax  

The excise tax is most commonly known to be imposed on the fuel you use, so your fuel tax refund awaits with your excise tax return. If your business relies on fuel for transportation or for products to use, then be sure to take that into consideration when you file your excise tax return.  

For example, if you use gas-powered machinery to make or transport your products, you may pay excise taxes to the government. Additionally, that means there is a fuel excise tax to recover. Speaking of transportation and products, let’s explore different industries and businesses that are eligible to claim the excise tax return.  

Different Industries that Can Claim Excise Tax 

As mentioned above, the excise tax is on goods and services including:  

  • alcohol  
  • fuel  
  • tobacco  
  • retirement accounts 
  • airline tickets 
  • cruise passengers 
  • and more!  

The above list of products means the following industries, professions, and businesses can claim the excise tax: 

  • landscapers 
  • refrigerated trucks (florists, produce, meat, etc.) 
  • transportation (cars, cruises, airlines, etc.) 
  • breweries, wineries, etc. 
  • investors 
  • gas-powered vehicles and equipment 
  • construction  
  • and more! 

The more you know, the more money you can recover. Continue reading to learn just a little more about the excise tax.  

Fuel Expenses for Your Business 

The idea of taxes and business expenses is not new territory for business owners. However, claiming an excise tax might be something new.  It is also important to remember that excise taxes are not the same as sales taxes. Excise taxes are too specific to the item and are almost always paid by the merchant, whereas the public generally pays for the sales taxes.  

Here is some useful advice. Save those itemized receipts, especially for fuel expenses, and get your money back this tax season. Anything that relies on fuel (cars, equipment, boats, etc.) can qualify if they were used as a business expense. This includes diesel fuel, too.  

 You can also always ask a professional if you are unsure if your expense qualifies. Let’s take a look at one last thing that is important for filing your taxes: documentation.  

Documents You Need to Claim Excise Tax 

Time to talk about probably the most challenging part – documentation. In addition to actual filing documents with the IRS, you will need all the documents that prove your business expenses and that you meet excise tax refund requirements.

Save your documentation throughout the year in the same secure place, so you know where to retrieve information from when it is time to file.  

Maximize Your Excise Tax Refund with TiP Excise 

Have we piqued your interest yet? We hope so! Here at TiP Excise, we can help you secure the largest tax refund you deserve. Our expert tax team will review your expenses, make sure you have all the proper documentation, and that none of your hard-earned money goes to waste.  

Why use TiP Excise? Because even the best accountants out there may not know all the ins and outs of the excise tax, which is why we exist. Our tax experts know everything, and if we need to do more research, we will! 

File Your Taxes with TiP Excise  

There are no hidden or upfront fees, and we have time for all your questions.  Also, we do the hard work so you can kick back and relax (of course while reaping the financial benefits). Our team of tax experts can also help you look at previous returns and uncover old receipts to see if you have missed the fuel tax refund.  

Are you interested in finding out what refund you will receive this year?  

We have a free calculator you can use. Don’t let this upcoming tax season stress you out! 

Contact us today to get started.