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Filing Form 1040ez

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Filing Form 1040ez

Filing form 1040ez 3. Filing form 1040ez   Abandonments Table of Contents You abandon property when you voluntarily and permanently give up possession and use of the property with the intention of ending your ownership but without passing it on to anyone else. Filing form 1040ez Whether an abandonment has occurred is determined in light of all the facts and circumstances. Filing form 1040ez You must both show an intention to abandon the property and affirmatively act to abandon the property. Filing form 1040ez A voluntary conveyance of the property in lieu of foreclosure is not an abandonment and is treated as the exchange of property to satisfy a debt. Filing form 1040ez For more information, see Sales and Exchanges in Publication 544. Filing form 1040ez The tax consequences of abandonment of property that secures a debt depend on whether you were personally liable for the debt (recourse debt) or were not personally liable for the debt (nonrecourse debt). Filing form 1040ez See Publication 544 if you abandoned property that did not secure debt. Filing form 1040ez This publication only discusses the tax consequences of abandoning property that secured a debt. Filing form 1040ez Abandonment of property securing recourse debt. Filing form 1040ez    In most cases, if you abandon property that secures debt for which you are personally liable (recourse debt), you do not have gain or loss until the later foreclosure is completed. Filing form 1040ez For details on figuring gain or loss on the foreclosure, see chapter 2. Filing form 1040ez Example 1—abandonment of personal-use property securing recourse debt. Filing form 1040ez In 2009, Anne purchased a home for $200,000. Filing form 1040ez She borrowed the entire purchase price, for which she was personally liable, and gave the bank a mortgage on the home. Filing form 1040ez In 2013, Anne lost her job and was unable to continue making her mortgage loan payments. Filing form 1040ez Because her mortgage loan balance was $185,000 and the FMV of her home was only $150,000, Anne decided to abandon her home by permanently moving out on August 1, 2013. Filing form 1040ez Because Anne was personally liable for the debt and the bank did not complete a foreclosure of the property in 2013, Anne has neither gain nor loss in tax year 2013 from abandoning the home. Filing form 1040ez If the bank sells the house at a foreclosure sale in 2014, Anne will have to figure her gain or nondeductible loss for tax year 2014 as discussed earlier in chapter 2. Filing form 1040ez Example 2—abandonment of business or investment property securing recourse debt. Filing form 1040ez In 2009, Sue purchased business property for $200,000. Filing form 1040ez She borrowed the entire purchase price, for which she was personally liable, and gave the lender a security interest in the property. Filing form 1040ez In 2013, Sue was unable to continue making her loan payments. Filing form 1040ez Because her loan balance was $185,000 and the FMV of the property was only $150,000, Sue abandoned the property on August 1, 2013. Filing form 1040ez Because Sue was personally liable for the debt and the lender did not complete a foreclosure of the property in 2013, Sue has neither gain nor loss in tax year 2013 from abandoning the property. Filing form 1040ez If the lender sells the property at a foreclosure sale in 2014, Sue will have to figure her gain or deductible loss for tax year 2014 as discussed earlier in chapter 2. Filing form 1040ez Abandonment of property securing nonrecourse debt. Filing form 1040ez    If you abandon property that secures debt for which you are not personally liable (nonrecourse debt), the abandonment is treated as a sale or exchange. Filing form 1040ez   The amount you realize on the abandonment of property that secured nonrecourse debt is the amount of the nonrecourse debt. Filing form 1040ez If the amount you realize is more than your adjusted basis, then you have a gain. Filing form 1040ez If your adjusted basis is more than the amount you realize, then you have a loss. Filing form 1040ez For more information on how to figure gain and loss, see Gain or Loss from Sales or Exchanges in Publication 544. Filing form 1040ez   Loss from abandonment of business or investment property is deductible as a loss. Filing form 1040ez The character of the loss depends on the character of the property. Filing form 1040ez The amount of deductible capital loss may be limited. Filing form 1040ez For more information, see Treatment of Capital Losses in Publication 544. Filing form 1040ez You cannot deduct any loss from abandonment of your home or other property held for personal use. Filing form 1040ez Example 1—abandonment of personal-use property securing nonrecourse debt. Filing form 1040ez In 2009, Timothy purchased a home for $200,000. Filing form 1040ez He borrowed the entire purchase price, for which he was not personally liable, and gave the bank a mortgage on the home. Filing form 1040ez In 2013, Timothy lost his job and was unable to continue making his mortgage loan payments. Filing form 1040ez Because his mortgage loan balance was $185,000 and the FMV of his home was only $150,000, Timothy decided to abandon his home by permanently moving out on August 1, 2013. Filing form 1040ez Because Timothy was not personally liable for the debt, the abandonment is treated as a sale or exchange of the home in tax year 2013. Filing form 1040ez Timothy's amount realized is $185,000 and his adjusted basis in the home is $200,000. Filing form 1040ez Timothy has a $15,000 nondeductible loss in tax year 2013. Filing form 1040ez (Had Timothy’s adjusted basis been less than the amount realized, Timothy would have had a gain that he would have to include in gross income. Filing form 1040ez ) The bank sells the house at a foreclosure sale in 2014. Filing form 1040ez Timothy has neither gain nor loss from the foreclosure sale. Filing form 1040ez Because he was not personally liable for the debt, he also has no cancellation of debt income. Filing form 1040ez Example 2—abandonment of business or investment property securing nonrecourse debt. Filing form 1040ez In 2009, Robert purchased business property for $200,000. Filing form 1040ez He borrowed the entire purchase price, for which he was not personally liable, and gave the lender a security interest in the property. Filing form 1040ez In 2013, Robert was unable to continue making his loan payments. Filing form 1040ez Because his loan balance was $185,000 and the FMV of the property was only $150,000, Robert decided to abandon the property on August 1, 2013. Filing form 1040ez Because Robert was not personally liable for the debt, the abandonment is treated as a sale or exchange of the property in tax year 2013. Filing form 1040ez Robert's amount realized is $185,000 and his adjusted basis in the property is $180,000 (as a result of $20,000 of depreciation deductions on the property). Filing form 1040ez Robert has a $5,000 gain in tax year 2013. Filing form 1040ez (Had Robert’s adjusted basis been greater than the amount realized, he would have had a deductible loss. Filing form 1040ez ) The lender sells the property at a foreclosure sale in 2014. Filing form 1040ez Robert has neither gain nor loss from the foreclosure sale. Filing form 1040ez Because he was not personally liable for the debt, he also has no cancellation of debt income. Filing form 1040ez Canceled debt. Filing form 1040ez    If the abandoned property secures a debt for which you are personally liable and the debt is canceled, you will realize ordinary income equal to the canceled debt. Filing form 1040ez This income is separate from any amount realized from abandonment of the property. Filing form 1040ez You must report this income on your return unless one of the exceptions or exclusions described in chapter 1 applies. Filing form 1040ez See chapter 1 for more details. Filing form 1040ez Forms 1099-A and 1099-C. Filing form 1040ez    In most cases, if you abandon real property (such as a home), intangible property, or tangible personal property held (wholly or partly) for use in a trade or business or for investment, that secures a loan and the lender knows the property has been abandoned, the lender should send you Form 1099-A showing information you need to figure your gain or loss from the abandonment. Filing form 1040ez Also, if your debt is canceled and the lender must file Form 1099-C, the lender can include the information about the abandonment on that form instead of on Form 1099-A. Filing form 1040ez The lender must file Form 1099-C and send you a copy if the amount of debt canceled is $600 or more and the lender is a financial institution, credit union, federal government agency, or any organization that has a significant trade or business of lending money. Filing form 1040ez For abandonments of property and debt cancellations occurring in 2013, these forms should be sent to you by January 31, 2014. Filing form 1040ez Prev  Up  Next   Home   More Online Publications
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The Filing Form 1040ez

Filing form 1040ez 14. Filing form 1040ez   Excise Taxes Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Fuels Used in FarmingBuyer of fuel, including undyed diesel fuel or undyed kerosene. Filing form 1040ez Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Filing form 1040ez Custom application of fertilizer and pesticide. Filing form 1040ez Fuel not used for farming. Filing form 1040ez Dyed Diesel Fuel and Dyed Kerosene Fuels Used in Off-Highway Business Use Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines How To Claim a Credit or RefundCredit only. Filing form 1040ez Claiming a Credit Claiming a Refund Including the Credit or Refund in Income Introduction You may be eligible to claim a credit on your income tax return for the federal excise tax on certain fuels. Filing form 1040ez You may also be eligible to claim a quarterly refund of the fuel taxes during the year, instead of waiting to claim a credit on your income tax return. Filing form 1040ez Whether you can claim a credit or refund depends on whether the fuel was taxed and the purpose (nontaxable use) for which you used the fuel. Filing form 1040ez The nontaxable uses of fuel for which a farmer may claim a credit or refund are generally the following. Filing form 1040ez Use on a farm for farming purposes. Filing form 1040ez Off-highway business use. Filing form 1040ez Uses other than as a fuel in a propulsion engine, such as home use. Filing form 1040ez Table 14-1 presents an overview of credits and refunds that may be claimed for fuels used for the nontaxable uses listed above. Filing form 1040ez See Publication 510, Excise Taxes, for more information. Filing form 1040ez Topics - This chapter discusses: Fuels used in farming Dyed diesel fuel and dyed kerosene Fuels used in off-highway business use Fuels used for household purposes How to claim a credit or refund Including the credit or refund in income Useful Items - You may want to see: Publication 510 Excise Taxes Form (and Instructions) 720 Quarterly Federal Excise Tax Return 4136 Credit for Federal Tax Paid on Fuels 8849 Claim for Refund of Excise Taxes See chapter 16 for information about getting publications and forms. Filing form 1040ez Fuels Used in Farming Owners, operators, and tenants of farms and certain other persons may be eligible to claim a credit or refund of excise taxes on fuel used in the trade or business of farming, when used on a farm in the United States for farming purposes. Filing form 1040ez See Table 14-1 for a list of available fuel tax credits and refunds. Filing form 1040ez Fuel is used on a farm for farming purposes only if used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Filing form 1040ez Farm. Filing form 1040ez   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms, orchards, plantations, ranches, nurseries, ranges, and feed yards for finishing cattle. Filing form 1040ez It also includes structures such as greenhouses used primarily for raising agricultural or horticultural commodities. Filing form 1040ez A fish farm is an area where fish are grown or raised and not merely caught or harvested. Filing form 1040ez Table 14-1. Filing form 1040ez Fuel Tax Credits and Refunds at a Glance Use this table to see if you can take a credit or refund for a nontaxable use of the fuel listed. Filing form 1040ez Fuel Used On a Farm for Farming Purposes Off-Highway Business Use Household Use or Use Other Than as a Fuel1 Gasoline Credit only Credit or refund None Aviation gasoline Credit only None None Undyed diesel fuel and undyed kerosene Credit or refund Credit or refund2 Credit or refund2 Kerosene for use in aviation Credit or refund None None Dyed diesel fuel and dyed kerosene None None None Other Fuels (including alternative fuels)3 Credit or refund Credit or refund None 1For a use other than as fuel in a propulsion engine. Filing form 1040ez 2Applies to undyed kerosene not sold from a blocked pump or, under certain circumstances, for blending with undyed diesel fuel to be used for heating purposes. Filing form 1040ez See Reg. Filing form 1040ez 48. Filing form 1040ez 6427-10 (b)(1) for the definition of a blocked pump. Filing form 1040ez 3Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under Internal Revenue Code section 4081. Filing form 1040ez It includes the alternative fuels: liquefied petroleum gas (LPG),“P” Series fuels, compressed natural gas (CNG), liquefied hydrogen, any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, liquid fuel derived from biomass, liquid natural gas (LNG), liquefied gas derived from biomass, and compressed gas derived from biomass. Filing form 1040ez Farming purposes. Filing form 1040ez   As the owner, tenant, or operator and the ultimate purchaser of fuel that you purchased, you use the fuel on a farm for farming purposes if you use it in any of the following ways. Filing form 1040ez To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Filing form 1040ez To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Filing form 1040ez To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Filing form 1040ez To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Filing form 1040ez For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Filing form 1040ez The more-than-one-half test applies separately to each commodity. Filing form 1040ez Commodity means a single raw product. Filing form 1040ez For example, apples and peaches are two separate commodities. Filing form 1040ez To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if these activities are incidental to your farming operations. Filing form 1040ez Your tree operations are incidental only if they are minor in nature when compared to the total farming operations. Filing form 1040ez   If any other person, such as a neighbor or custom operator (independent contractor), performs a service for you on your farm for any of the purposes included in list items (1) or (2), above, you are considered to be the ultimate purchaser who used the fuel on a farm for farming purposes. Filing form 1040ez Therefore, you can still claim the credit or refund for the fuel so used. Filing form 1040ez However, see Custom application of fertilizer and pesticide, later. Filing form 1040ez If the other person performs any other services for you on your farm for purposes not included in list items (1) or (2) above, no one can claim the credit or refund for fuel used on your farm for those other services. Filing form 1040ez Buyer of fuel, including undyed diesel fuel or undyed kerosene. Filing form 1040ez   If doubt exists whether the owner, tenant, or operator of the farm bought the fuel, determine who actually bore the cost of the fuel. Filing form 1040ez For example, if the owner of a farm and his or her tenant equally share the cost of gasoline used on the farm, each can claim a credit for the tax on half the fuel used. Filing form 1040ez Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Filing form 1040ez   Usually, the farmer is the only person who can make a claim for credit or refund for the tax on undyed diesel fuel, undyed kerosene, or other fuels (including alternative fuel) used for farming purposes. Filing form 1040ez However, see Custom application of fertilizer and pesticide, next. Filing form 1040ez Also see Dyed Diesel Fuel and Dyed Kerosene, later. Filing form 1040ez Example. Filing form 1040ez Farm owner Haleigh Blue hired custom operator Tyler Steele to cultivate the soil on her farm. Filing form 1040ez Tyler used 200 gallons of undyed diesel fuel that he purchased to perform the work on Haleigh's farm. Filing form 1040ez In addition, Haleigh hired contractor Lee Brown to pack and store her apple crop. Filing form 1040ez Lee bought 25 gallons of undyed diesel fuel to use in packing the apples. Filing form 1040ez Haleigh can claim the credit for the 200 gallons of undyed diesel fuel used by Tyler on her farm because it qualifies as fuel used on the farm for farming purposes. Filing form 1040ez No one can claim a credit for the 25 gallons used by Lee because that fuel was not used for a farming purpose included in list items (1) or (2), above. Filing form 1040ez In the above example, both Tyler Steele and Lee Brown could have purchased dyed (untaxed) diesel fuel for their tasks. Filing form 1040ez Custom application of fertilizer and pesticide. Filing form 1040ez   Fuel used on a farm for farming purposes includes fuel used in the application (including aerial application) of fertilizer, pesticides, or other substances. Filing form 1040ez Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Filing form 1040ez For applicators using highway vehicles, only the fuel used on the farm is exempt. Filing form 1040ez Fuel used traveling on the highway to and from the farm is taxable. Filing form 1040ez Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as used for a farming purpose. Filing form 1040ez For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Filing form 1040ez For kerosene used in aviation, the ultimate purchaser may make the claim or waive the right to make the claim to the registered ultimate vendor. Filing form 1040ez A sample waiver is included as Model Waiver L in the appendix of Publication 510. Filing form 1040ez A registered ultimate vendor is the person who sells undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to the user (ultimate purchaser) of the fuel for use on a farm for farming purposes. Filing form 1040ez To claim a credit or refund of tax, the ultimate vendor must be registered with the Internal Revenue Service at the time the claim is made. Filing form 1040ez However, registered ultimate vendors cannot make claims for undyed diesel fuel and undyed kerosene sold for use on a farm for farming purposes. Filing form 1040ez Fuel not used for farming. Filing form 1040ez   You do not use fuel on a farm for farming purposes when you use it in any of the following ways. Filing form 1040ez Off the farm, such as on the highway or in noncommercial aviation, even if the fuel is used in transporting livestock, feed, crops, or equipment. Filing form 1040ez For personal use, such as lawn mowing. Filing form 1040ez In processing, packaging, freezing, or canning operations. Filing form 1040ez In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Filing form 1040ez All-terrain vehicles (ATVs). Filing form 1040ez   Fuel used in ATVs on a farm for farming purposes, discussed earlier, is eligible for a credit or refund of excise taxes on the fuel. Filing form 1040ez Fuel used in ATVs for nonfarming purposes is not eligible for a credit or refund of the taxes. Filing form 1040ez If ATVs are used both for farming and nonfarming purposes, only that portion of the fuel used for farming purposes is eligible for the credit or refund. Filing form 1040ez Dyed Diesel Fuel and Dyed Kerosene If you purchase dyed diesel fuel or dyed kerosene for a nontaxable use, you must use it only on a farm for farming purposes or for other nontaxable purposes. Filing form 1040ez For example, you should not use dyed diesel fuel in a truck that is used both on the farm for farming purposes and on the highway, even though the highway use is in connection with farm business. Filing form 1040ez Excise tax applies to the fuel used by the truck on the highways. Filing form 1040ez In this situation, undyed (taxed) fuel should be purchased for the truck. Filing form 1040ez You should keep fuel records of the use of the truck on the farm for farming purposes, and for other uses. Filing form 1040ez You may be eligible for a credit or refund for the excise tax on fuel used on the farm for farming purposes. Filing form 1040ez Penalty. Filing form 1040ez   A penalty is imposed on any person who knowingly uses, sells, or alters dyed diesel fuel or dyed kerosene for any purpose other than a nontaxable use. Filing form 1040ez The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Filing form 1040ez After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Filing form 1040ez For more information on this penalty, see Publication 510. Filing form 1040ez Fuels Used in Off-Highway Business Use You may be eligible to claim a credit or refund for the excise tax on fuel used in an off-highway business use. Filing form 1040ez Off-highway business use. Filing form 1040ez   This is any use of fuel in a trade or business or in an income-producing activity. Filing form 1040ez The use must not be in a highway vehicle registered or required to be registered for use on public highways. Filing form 1040ez Off-highway business use generally does not include any use in a recreational motorboat. Filing form 1040ez Examples. Filing form 1040ez   Off-highway business use includes the use of fuels in a trade or business in any of the following ways. Filing form 1040ez In stationary machines such as generators, compressors, power saws, and similar equipment; For cleaning ; and In forklift trucks, bulldozers, and earthmovers. Filing form 1040ez   Off-highway nonbusiness (taxable) use of fuel includes: use in minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Filing form 1040ez For more information, see Publication 510. Filing form 1040ez Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines You may be eligible to claim a credit or refund for the excise tax on undyed diesel fuel or kerosene used for home heating, lighting, and cooking. Filing form 1040ez This also applies to diesel fuel and kerosene used in a home generator to produce electricity for home use. Filing form 1040ez Home use of a fuel does not include use in a propulsion engine and it is not considered an off-highway business use. Filing form 1040ez How To Claim a Credit or Refund You may be able to claim a credit or refund of the excise tax on fuels you use for nontaxable uses. Filing form 1040ez The basic rules for claiming credits and refunds are listed in Table 14-2 . Filing form 1040ez Table 14-2. Filing form 1040ez Claiming a Credit or Refund of Excise Taxes This table gives the basic rules for claiming a credit or refund of excise taxes on fuels used for a nontaxable use. Filing form 1040ez   Credit Refund Which form to use Form 4136, Credit for Federal Tax Paid on Fuels Form 8849, Claim for Refund of Excise Taxes, and Schedule 1 (Form 8849), Nontaxable Use of Fuels Type of form Annual Quarterly When to file With your income tax return By the last day of the quarter following the last quarter included in the claim Amount of tax Any amount $750 or more1 1You may carry over an amount less than $750 to the next quarter. Filing form 1040ez Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Filing form 1040ez You do not have to use any special form, but the records should establish the following information. Filing form 1040ez The total number of gallons bought and used during the period covered by your claim. Filing form 1040ez The dates of the purchases. Filing form 1040ez The names and addresses of suppliers and amounts bought from each during the period covered by your claim. Filing form 1040ez The nontaxable use for which you used the fuel. Filing form 1040ez The number of gallons used for each nontaxable use. Filing form 1040ez It is important that your records separately show the number of gallons used for each nontaxable use that qualifies as a claim. Filing form 1040ez For more information about recordkeeping, see Publication 583, Starting a Business and Keeping Records. Filing form 1040ez Credit or refund. Filing form 1040ez   A credit is an amount that reduces the tax on your income tax return when you file it at the end of the year. Filing form 1040ez If you meet certain requirements, you may claim a refund during the year instead of waiting until you file your income tax return. Filing form 1040ez Credit only. Filing form 1040ez   You can claim the following taxes only as a credit on your income tax return. Filing form 1040ez Tax on gasoline and aviation gasoline you used on a farm for farming purposes. Filing form 1040ez Tax on fuels (including undyed diesel fuel or undyed kerosene) you used for nontaxable uses if the total for the tax year is less than $750. Filing form 1040ez Tax on fuel you did not include in any claim for refund previously filed for any quarter of the tax year. Filing form 1040ez Claiming a Credit You make a claim for a fuel tax credit on Form 4136 and attach it to your income tax return. Filing form 1040ez Do not claim a credit for any excise tax for which you have filed a refund claim. Filing form 1040ez How to claim a credit. Filing form 1040ez   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, trust, or farmers' cooperative association. Filing form 1040ez Individuals. Filing form 1040ez   You claim the credit on the “Credit for federal tax on fuels” line of your Form 1040. Filing form 1040ez If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Filing form 1040ez Partnership. Filing form 1040ez   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Filing form 1040ez , showing each partner's share of the number of gallons of each fuel sold or used for a nontaxable use, the type of use, and the applicable credit per gallon. Filing form 1040ez Each partner claims the credit on his or her income tax return for the partner's share of the fuel used by the partnership. Filing form 1040ez An electing large partnership can claim the credit on the “Other payments” line of Form 1065-B, U. Filing form 1040ez S. Filing form 1040ez Return of Income for Electing Large Partnerships. Filing form 1040ez Other entities. Filing form 1040ez   Corporations, S corporations, farmers' cooperative associations, and trusts make the claim on the appropriate line of their income tax return. Filing form 1040ez When to claim a credit. Filing form 1040ez   You can claim a fuel tax credit on your income tax return for the year you used the fuel. Filing form 1040ez You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Filing form 1040ez A claim for credit or refund of an overpayment must generally be filed within the later of: Three years from the date the original return was filed, or Two years from the date the tax was paid. Filing form 1040ez Claiming a Refund Generally, you may claim a refund of excise taxes on Form 8849. Filing form 1040ez Complete and attach to Form 8849 the appropriate Form 8849 schedule(s). Filing form 1040ez The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Filing form 1040ez If you file Form 720, you can use its Schedule C for your refund claims for the quarter. Filing form 1040ez See the Instructions for Form 720. Filing form 1040ez Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Form 720 or Form 4136. Filing form 1040ez You may file a claim for refund for any quarter of your tax year for which you can claim $750 or more. Filing form 1040ez This amount is the excise tax on all fuels used for a nontaxable use during that quarter or any prior quarter (for which no other claim has been filed) during the tax year. Filing form 1040ez If you cannot claim at least $750 at the end of a quarter, you carry the amount over to the next quarter of your tax year to determine if you can claim at least $750 for that quarter. Filing form 1040ez If you cannot claim at least $750 at the end of the fourth quarter of your tax year, you must claim a credit on your income tax return using Form 4136. Filing form 1040ez Only one claim can be filed for a quarter. Filing form 1040ez You cannot claim a refund for excise tax on gasoline and aviation gasoline used on a farm for farming purposes. Filing form 1040ez You must claim a credit on your income tax return for the tax. Filing form 1040ez How to file a quarterly claim. Filing form 1040ez   File the claim for refund by filling out Schedule 1 (Form 8849) and attaching it to Form 8849. Filing form 1040ez Send it to the address shown in the instructions. Filing form 1040ez If you file Form 720, you can use its Schedule C for your refund claims. Filing form 1040ez See the Instructions for Form 720. Filing form 1040ez When to file a quarterly claim. Filing form 1040ez   You must file a quarterly claim by the last day of the first quarter following the last quarter included in the claim. Filing form 1040ez If you do not file a timely refund claim for the fourth quarter of your tax year, you will have to claim a credit for that amount on your income tax return, as discussed earlier. Filing form 1040ez    In most situations, the amount claimed as a credit or refund will be less than the amount deducted as fuel tax expense because the Leaking Underground Storage Tank (LUST) tax of $0. Filing form 1040ez 001 per gallon is generally not subject to credit or refund. Filing form 1040ez Including the Credit or Refund in Income Include any credit or refund of excise taxes on fuels in your gross income if you claimed the total cost of the fuel (including the excise taxes) as an expense deduction that reduced your income tax liability. Filing form 1040ez Which year you include a credit or refund in gross income depends on whether you use the cash or an accrual method of accounting. Filing form 1040ez Cash method. Filing form 1040ez   If you use the cash method and file a claim for refund, include the refund amount in gross income for the tax year in which you receive the refund. Filing form 1040ez If you claim a credit on your income tax return, include the credit amount in gross income for the tax year in which you file Form 4136. Filing form 1040ez If you file an amended return and claim a credit, include the credit amount in gross income for the tax year in which you receive the credit. Filing form 1040ez Example. Filing form 1040ez Sharon Brown, a farmer who uses the cash method, filed her 2012 Form 1040 on March 3, 2013. Filing form 1040ez On her Schedule F, she deducted the total cost of gasoline (including $110 of excise taxes) used on the farm for farming purposes. Filing form 1040ez Then, on Form 4136, she claimed the $110 as a credit. Filing form 1040ez Sharon reports the $110 as other income on line 8b of her 2013 Schedule F. Filing form 1040ez Accrual method. Filing form 1040ez   If you use an accrual method, include the amount of credit or refund in gross income for the tax year in which you used the fuels. Filing form 1040ez It does not matter whether you filed for a quarterly refund or claimed the entire amount as a credit. Filing form 1040ez Example. Filing form 1040ez Patty Green, a farmer who uses the accrual method, files her 2012 Form 1040 on April 15, 2013. Filing form 1040ez On Schedule F, she deducts the total cost of gasoline (including $155 of excise taxes) she used on the farm for farming purposes during 2012. Filing form 1040ez On Form 4136, Patty claims the $155 as a credit. Filing form 1040ez She reports the $155 as other income on line 8b of her 2012 Schedule F. Filing form 1040ez Prev  Up  Next   Home   More Online Publications