Claiming Form 2290 Credits for Unused Tax
Every year, as a heavy vehicle owner or operator, you should file Form 2290 and pay your Heavy Highway Vehicle Use Tax (HVUT). Then, what happens if you do pay the tax, and your truck is no longer in service for the entire year of tax? Do you just lose that amount? Absolutely not! The IRS appreciates such situations, and fortunately, some provisions exist to claim a credit for the unused tax.
Knowing about these provisions can surely get your money back or offset your tax liabilities in the future. The following are some conditions under which you can apply for a credit:
1. Sale, Destruction, or Theft of Vehicles: This is perhaps the strongest reason for credit claims. If you've paid the full year's HVUT, and for some reason, your vehicle is sold, totally destroyed, or stolen before June 1st of the current tax period, you become eligible for a prorated credit. The amount will depend on how many months remain in that tax year after the event. Getting proper documentation – bill of sale, police report, or insurance clai-m –is of utmost importance to substantiate your claim.
2. Exceeding Low Mileage Suspension: Sometimes a vehicle is initially filed as "suspended" because it was expected to travel less than 5,000 miles, or 7,500 for agricultural vehicles. If that mileage limit is then unexpectedly exceeded during the tax year, the vehicle becomes taxable. If you initially paid the full tax for a vehicle that then falls into this category, you've potentially overpaid, thereby giving you the chance to adjust your current filing accordingly.
How Do You Claim Your Credit:
Generally, these will be claimed on a later Form 2290 return. This effectively reduces the amount of tax you owe for other vehicles or the next tax period. For some instances, especially if you're not set to file another Form 2290 soon, you may need to resort to Form 8849, Claim for Refund of Excise Taxes, along with Schedule 6.
To claim your credit, it is important to keep clear records of all vehicle events with dates of sale, destruction, or theft. As your preferred e-file service for HVUT, we have made this easy, guiding you step by step to claim your due tax relief correctly. Therefore, don't lose your money! Know your options for HVUT credits today!
