Form 2290 Credits

The IRS allows taxpayers to claim and apply credits for excise taxes paid against their balance due on their Form 2290 return under the following scenarios

  • Taxable vehicle was sold before the period of June 1st
  • Taxable vehicle was stolen/destroyed before the period of June 1st
  • The vehicle for which taxes were paid did not exceed 5000 miles of use (7,500 for agriculture vehicles) before the period of June 1st.

Example: You file your taxable vehicle and pay $550 for the period of July 1st 2022 to June 30th 2023, you later sold your vehicle in November of 2022. You are eligible to claim a credit on your 2290 for the partial months that you didn’t use (7 months) in following tax year of July 1st, 2023 to June 30th, 2024

Credit for Stolen, Destroyed or Sold Vehicles

Credit for stolen, destroyed or sold vehicles during the tax period will be prorated based on the occurrence dates. For stolen, destroyed or sold vehicles you need to include the VIN, Taxable Gross Weight of the Vehicle and Date of Theft, Accident or Sale. For sold vehicles, you must have the buyers details otherwise you will not be able to submit a credit on your Form 2290

Credit for Low Mileage Vehicles

In the case of credits for low mileage vehicles, there can be two scenarios, one is, you are qualified for the claim, and you get the paid full amount as a credit. Second scenario is that you aren’t qualified for the credit and you will not get any credit. This credit is not prorated like the previous credit for stolen, destroyed or sold vehicles. A refund for credit on a vehicle that did not exceed the use of 5,000 miles (7,500 for agricultural use) cannot be claimed until the end of the Form 2290 tax period.

Tax Dues are Overpaid

The taxpayer can place a claim when the tax dues are overpaid by mistake for various reasons. For instance, the taxpayer might have reported the tax for the same VIN and paid the tax twice. Reported tax returns for a used vehicle for which the tax dues are already settled with the IRS.

Important Notes About Form 2290 Claims

  • The claimed credit should not exceed the tax amount that is reported on Form 2290. If it happens, the excess credit needs to be claimed using Form 8849, claim for refund of excise taxes and schedule 6, and other claims in order to claim the overpayment due to the error in previously reported Form 2290 tax liability.
  • Credit, lower tax, refund or exemption is not permitted for a decreased load or occasional light, discontinued or changed use of the taxable vehicle.
  • You cannot claim the credit until the end of the tax period for the vehicles for which the taxes are paid and used 5,000 miles or less (7,500 miles or less for agricultural vehicles).
  • Even when you know that you will not exceed the 5,000 miles mileage limit during the tax year, you cannot claim the credit until the end of the tax period, June 30th.

You need to place the claim within 3 years of filing the actual tax return to which the claim relates or 2 years from the tax reported and paid, whichever is later. To apply for credit, complete Form 2290, include the required information and file your tax return. In order to apply for a refund, you need to complete Form 8849 along with Schedule 6(Form 8849) following the given instructions. You can call our customer support team for any guidance, and we can walk you through the filing process.

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