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Filing State Tax Return

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Filing State Tax Return

Filing state tax return 4. Filing state tax return   Retirement Savings Contributions Credit (Saver's Credit) Table of Contents What's New Introduction Full-time student. Filing state tax return Adjusted gross income. Filing state tax return Distributions received by spouse. Filing state tax return Testing period. Filing state tax return What's New Modified AGI limit for retirement savings contributions credit increased. Filing state tax return  For 2013, you may be able to claim the retirement savings contributions credit if your modified AGI is not more than: $59,000 if your filing status is married filing jointly, $44,250 if your filing status is head of household, or $29,500 if your filing status is single, married filing separately, or qualifying widow(er). Filing state tax return Introduction You may be able to take a tax credit if you make eligible contributions (defined later) to a qualified retirement plan, an eligible deferred compensation plan, or an individual retirement arrangement (IRA). Filing state tax return You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). Filing state tax return This credit could reduce the federal income tax you pay dollar for dollar. Filing state tax return    Can you claim the credit?   If you make eligible contributions to a qualified retirement plan, an eligible deferred compensation plan, or an IRA, you can claim the credit if all of the following apply. Filing state tax return You were born before January 2, 1996. Filing state tax return You are not a full-time student (explained next). Filing state tax return No one else, such as your parent(s), claims an exemption for you on their tax return. Filing state tax return Your adjusted gross income (defined below) is not more than: $59,000 if your filing status is married filing jointly, $44,250 if your filing status is head of household, or $29,500 if your filing status is single, married filing separately, or qualifying widow(er). Filing state tax return Full-time student. Filing state tax return   You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either: A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government. Filing state tax return You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full time. Filing state tax return Adjusted gross income. Filing state tax return   This is generally the amount on line 38 of your 2013 Form 1040; line 22 of your 2013 Form 1040A; or line 37 of your 2013 Form 1040NR. Filing state tax return However, you must add to that amount any exclusion or deduction claimed for the year for: Foreign earned income, Foreign housing costs, Income for bona fide residents of American Samoa, and Income from Puerto Rico. Filing state tax return Eligible contributions. Filing state tax return   These include: Contributions to a traditional or Roth IRA, Salary reduction contributions (elective deferrals, including amounts designated as after-tax Roth contributions) to: A 401(k) plan (including a SIMPLE 401(k)), A section 403(b) annuity, An eligible deferred compensation plan of a state or local government (a governmental 457 plan), A SIMPLE IRA plan, or A salary reduction SEP, and Contributions to a section 501(c)(18) plan. Filing state tax return They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or section 403(b) annuity. Filing state tax return For purposes of the credit, an employee contribution will be voluntary as long as it is not required as a condition of employment. Filing state tax return Reducing eligible contributions. Filing state tax return   Reduce your eligible contributions (but not below zero) by the total distributions you received during the testing period (defined later) from any IRA, plan, or annuity included above under Eligible contributions. Filing state tax return Also reduce your eligible contributions by any distribution from a Roth IRA that is not rolled over, even if the distribution is not taxable. Filing state tax return   Do not reduce your eligible contributions by any of the following. Filing state tax return The portion of any distribution which is not includible in income because it is a trustee-to-trustee transfer or a rollover distribution. Filing state tax return Distributions that are taxable as the result of an in-plan rollover to your designated Roth account. Filing state tax return Any distribution that is a return of a contribution to an IRA (including a Roth IRA) made during the year for which you claim the credit if: The distribution is made before the due date (including extensions) of your tax return for that year, You do not take a deduction for the contribution, and The distribution includes any income attributable to the contribution. Filing state tax return Loans from a qualified employer plan treated as a distribution. Filing state tax return Distributions of excess contributions or deferrals (and income attributable to excess contributions and deferrals). Filing state tax return Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k). Filing state tax return Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA. Filing state tax return Distributions from a military retirement plan. Filing state tax return Distributions from an inherited IRA by a nonspousal beneficiary. Filing state tax return Distributions received by spouse. Filing state tax return   Any distributions your spouse receives are treated as received by you if you file a joint return with your spouse both for the year of the distribution and for the year for which you claim the credit. Filing state tax return Testing period. Filing state tax return   The testing period consists of the year for which you claim the credit, the period after the end of that year and before the due date (including extensions) for filing your return for that year, and the 2 tax years before that year. Filing state tax return Example. Filing state tax return You and your spouse filed joint returns in 2011 and 2012, and plan to do so in 2013 and 2014. Filing state tax return You received a taxable distribution from a qualified plan in 2011 and a taxable distribution from an eligible deferred compensation plan in 2012. Filing state tax return Your spouse received taxable distributions from a Roth IRA in 2013 and tax-free distributions from a Roth IRA in 2014 before April 15. Filing state tax return You made eligible contributions to an IRA in 2013 and you otherwise qualify for this credit. Filing state tax return You must reduce the amount of your qualifying contributions in 2013 by the total of the distributions you received in 2011, 2012, 2013, and 2014. Filing state tax return Maximum eligible contributions. Filing state tax return   After your contributions are reduced, the maximum annual contribution on which you can base the credit is $2,000 per person. Filing state tax return Effect on other credits. Filing state tax return   The amount of this credit will not change the amount of your refundable tax credits. Filing state tax return A refundable tax credit, such as the earned income credit or the refundable amount of your child tax credit, is an amount that you would receive as a refund even if you did not otherwise owe any taxes. Filing state tax return Maximum credit. Filing state tax return   This is a nonrefundable credit. Filing state tax return The amount of the credit in any year cannot be more than the amount of tax that you would otherwise pay (not counting any refundable credits) in any year. Filing state tax return If your tax liability is reduced to zero because of other nonrefundable credits, such as the credit for child and dependent care expenses, then you will not be entitled to this credit. Filing state tax return How to figure and report the credit. Filing state tax return   The amount of the credit you can get is based on the contributions you make and your credit rate. Filing state tax return Your credit rate can be as low as 10% or as high as 50%. Filing state tax return Your credit rate depends on your income and your filing status. Filing state tax return See Form 8880 to determine your credit rate. Filing state tax return   The maximum contribution taken into account is $2,000 per person. Filing state tax return On a joint return, up to $2,000 is taken into account for each spouse. Filing state tax return   Figure the credit on Form 8880. Filing state tax return Report the credit on line 50 of your Form 1040; line 32 of your Form 1040A; or line 47 of your Form 1040NR and attach Form 8880 to your return. Filing state tax return Prev  Up  Next   Home   More Online Publications
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Abusive Tax Schemes - Criminal Investigation (CI)

Overview - Abusive Tax Schemes
Since the mid-1990s, the IRS has witnessed a proliferation of abusive tax schemes, particularly those with offshore components. 

What are some of the Most Common Abusive Tax Schemes?
The most common abusive tax schemes involve numerous domestic and foreign trusts, partnerships, or nominees.

How Does the Taxpayer Access the Funds in Offshore Accounts? - Abusive Tax Schemes
There are two methods commonly used to get funds back to the taxpayers. They are through credit/debit cards and fraudulent loans. 

In Partnership - IRS Criminal and Civil Enforcement and Department of Justice - Abusive Tax Schemes
Parallel civil and criminal investigations are an effective and aggressive approach that halts these schemes quickly and permanently.

Civil and Criminal Penalties - Abusive Tax Schemes
Investors of abusive tax schemes that improperly evade tax are still liable for taxes, interest, and civil penalties.

Statistical Data - Abusive Tax Schemes
Enforcement statistics on investigations initiated, prosecutions recommended, indictments, sentenced, and months to serve in prison.

Examples of Abusive Tax Scheme
Examples have been written from public record documents filed in the district courts where the case was prosecuted.

 


Criminal Enforcement Home Page

How to Report Suspected Tax Fraud Activities

Page Last Reviewed or Updated: 30-Oct-2013

The Filing State Tax Return

Filing state tax return 14. Filing state tax return   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 state tax return Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Filing state tax return Custom application of fertilizer and pesticide. Filing state tax return Fuel not used for farming. Filing state tax return 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 state tax return 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 state tax return 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 state tax return 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 state tax return The nontaxable uses of fuel for which a farmer may claim a credit or refund are generally the following. Filing state tax return Use on a farm for farming purposes. Filing state tax return Off-highway business use. Filing state tax return Uses other than as a fuel in a propulsion engine, such as home use. Filing state tax return Table 14-1 presents an overview of credits and refunds that may be claimed for fuels used for the nontaxable uses listed above. Filing state tax return See Publication 510, Excise Taxes, for more information. Filing state tax return 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 state tax return 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 state tax return See Table 14-1 for a list of available fuel tax credits and refunds. Filing state tax return 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 state tax return Farm. Filing state tax return   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 state tax return It also includes structures such as greenhouses used primarily for raising agricultural or horticultural commodities. Filing state tax return A fish farm is an area where fish are grown or raised and not merely caught or harvested. Filing state tax return Table 14-1. Filing state tax return 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 state tax return 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 state tax return 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 state tax return See Reg. Filing state tax return 48. Filing state tax return 6427-10 (b)(1) for the definition of a blocked pump. Filing state tax return 3Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under Internal Revenue Code section 4081. Filing state tax return 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 state tax return Farming purposes. Filing state tax return   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 state tax return To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Filing state tax return To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Filing state tax return To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Filing state tax return To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Filing state tax return For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Filing state tax return The more-than-one-half test applies separately to each commodity. Filing state tax return Commodity means a single raw product. Filing state tax return For example, apples and peaches are two separate commodities. Filing state tax return 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 state tax return Your tree operations are incidental only if they are minor in nature when compared to the total farming operations. Filing state tax return   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 state tax return Therefore, you can still claim the credit or refund for the fuel so used. Filing state tax return However, see Custom application of fertilizer and pesticide, later. Filing state tax return 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 state tax return Buyer of fuel, including undyed diesel fuel or undyed kerosene. Filing state tax return   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 state tax return 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 state tax return Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). Filing state tax return   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 state tax return However, see Custom application of fertilizer and pesticide, next. Filing state tax return Also see Dyed Diesel Fuel and Dyed Kerosene, later. Filing state tax return Example. Filing state tax return Farm owner Haleigh Blue hired custom operator Tyler Steele to cultivate the soil on her farm. Filing state tax return Tyler used 200 gallons of undyed diesel fuel that he purchased to perform the work on Haleigh's farm. Filing state tax return In addition, Haleigh hired contractor Lee Brown to pack and store her apple crop. Filing state tax return Lee bought 25 gallons of undyed diesel fuel to use in packing the apples. Filing state tax return 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 state tax return 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 state tax return In the above example, both Tyler Steele and Lee Brown could have purchased dyed (untaxed) diesel fuel for their tasks. Filing state tax return Custom application of fertilizer and pesticide. Filing state tax return   Fuel used on a farm for farming purposes includes fuel used in the application (including aerial application) of fertilizer, pesticides, or other substances. Filing state tax return Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Filing state tax return For applicators using highway vehicles, only the fuel used on the farm is exempt. Filing state tax return Fuel used traveling on the highway to and from the farm is taxable. Filing state tax return 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 state tax return For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Filing state tax return 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 state tax return A sample waiver is included as Model Waiver L in the appendix of Publication 510. Filing state tax return 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 state tax return 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 state tax return However, registered ultimate vendors cannot make claims for undyed diesel fuel and undyed kerosene sold for use on a farm for farming purposes. Filing state tax return Fuel not used for farming. Filing state tax return   You do not use fuel on a farm for farming purposes when you use it in any of the following ways. Filing state tax return 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 state tax return For personal use, such as lawn mowing. Filing state tax return In processing, packaging, freezing, or canning operations. Filing state tax return In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Filing state tax return All-terrain vehicles (ATVs). Filing state tax return   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 state tax return Fuel used in ATVs for nonfarming purposes is not eligible for a credit or refund of the taxes. Filing state tax return 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 state tax return 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 state tax return 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 state tax return Excise tax applies to the fuel used by the truck on the highways. Filing state tax return In this situation, undyed (taxed) fuel should be purchased for the truck. Filing state tax return You should keep fuel records of the use of the truck on the farm for farming purposes, and for other uses. Filing state tax return You may be eligible for a credit or refund for the excise tax on fuel used on the farm for farming purposes. Filing state tax return Penalty. Filing state tax return   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 state tax return The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Filing state tax return After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Filing state tax return For more information on this penalty, see Publication 510. Filing state tax return 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 state tax return Off-highway business use. Filing state tax return   This is any use of fuel in a trade or business or in an income-producing activity. Filing state tax return The use must not be in a highway vehicle registered or required to be registered for use on public highways. Filing state tax return Off-highway business use generally does not include any use in a recreational motorboat. Filing state tax return Examples. Filing state tax return   Off-highway business use includes the use of fuels in a trade or business in any of the following ways. Filing state tax return In stationary machines such as generators, compressors, power saws, and similar equipment; For cleaning ; and In forklift trucks, bulldozers, and earthmovers. Filing state tax return   Off-highway nonbusiness (taxable) use of fuel includes: use in minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Filing state tax return For more information, see Publication 510. Filing state tax return 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 state tax return This also applies to diesel fuel and kerosene used in a home generator to produce electricity for home use. Filing state tax return Home use of a fuel does not include use in a propulsion engine and it is not considered an off-highway business use. Filing state tax return 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 state tax return The basic rules for claiming credits and refunds are listed in Table 14-2 . Filing state tax return Table 14-2. Filing state tax return 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 state tax return   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 state tax return 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 state tax return You do not have to use any special form, but the records should establish the following information. Filing state tax return The total number of gallons bought and used during the period covered by your claim. Filing state tax return The dates of the purchases. Filing state tax return The names and addresses of suppliers and amounts bought from each during the period covered by your claim. Filing state tax return The nontaxable use for which you used the fuel. Filing state tax return The number of gallons used for each nontaxable use. Filing state tax return It is important that your records separately show the number of gallons used for each nontaxable use that qualifies as a claim. Filing state tax return For more information about recordkeeping, see Publication 583, Starting a Business and Keeping Records. Filing state tax return Credit or refund. Filing state tax return   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 state tax return If you meet certain requirements, you may claim a refund during the year instead of waiting until you file your income tax return. Filing state tax return Credit only. Filing state tax return   You can claim the following taxes only as a credit on your income tax return. Filing state tax return Tax on gasoline and aviation gasoline you used on a farm for farming purposes. Filing state tax return 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 state tax return Tax on fuel you did not include in any claim for refund previously filed for any quarter of the tax year. Filing state tax return Claiming a Credit You make a claim for a fuel tax credit on Form 4136 and attach it to your income tax return. Filing state tax return Do not claim a credit for any excise tax for which you have filed a refund claim. Filing state tax return How to claim a credit. Filing state tax return   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, trust, or farmers' cooperative association. Filing state tax return Individuals. Filing state tax return   You claim the credit on the “Credit for federal tax on fuels” line of your Form 1040. Filing state tax return If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Filing state tax return Partnership. Filing state tax return   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 state tax return , 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 state tax return 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 state tax return An electing large partnership can claim the credit on the “Other payments” line of Form 1065-B, U. Filing state tax return S. Filing state tax return Return of Income for Electing Large Partnerships. Filing state tax return Other entities. Filing state tax return   Corporations, S corporations, farmers' cooperative associations, and trusts make the claim on the appropriate line of their income tax return. Filing state tax return When to claim a credit. Filing state tax return   You can claim a fuel tax credit on your income tax return for the year you used the fuel. Filing state tax return You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Filing state tax return 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 state tax return Claiming a Refund Generally, you may claim a refund of excise taxes on Form 8849. Filing state tax return Complete and attach to Form 8849 the appropriate Form 8849 schedule(s). Filing state tax return The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Filing state tax return If you file Form 720, you can use its Schedule C for your refund claims for the quarter. Filing state tax return See the Instructions for Form 720. Filing state tax return 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 state tax return You may file a claim for refund for any quarter of your tax year for which you can claim $750 or more. Filing state tax return 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 state tax return 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 state tax return 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 state tax return Only one claim can be filed for a quarter. Filing state tax return You cannot claim a refund for excise tax on gasoline and aviation gasoline used on a farm for farming purposes. Filing state tax return You must claim a credit on your income tax return for the tax. Filing state tax return How to file a quarterly claim. Filing state tax return   File the claim for refund by filling out Schedule 1 (Form 8849) and attaching it to Form 8849. Filing state tax return Send it to the address shown in the instructions. Filing state tax return If you file Form 720, you can use its Schedule C for your refund claims. Filing state tax return See the Instructions for Form 720. Filing state tax return When to file a quarterly claim. Filing state tax return   You must file a quarterly claim by the last day of the first quarter following the last quarter included in the claim. Filing state tax return 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 state tax return    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 state tax return 001 per gallon is generally not subject to credit or refund. Filing state tax return 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 state tax return 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 state tax return Cash method. Filing state tax return   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 state tax return 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 state tax return 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 state tax return Example. Filing state tax return Sharon Brown, a farmer who uses the cash method, filed her 2012 Form 1040 on March 3, 2013. Filing state tax return On her Schedule F, she deducted the total cost of gasoline (including $110 of excise taxes) used on the farm for farming purposes. Filing state tax return Then, on Form 4136, she claimed the $110 as a credit. Filing state tax return Sharon reports the $110 as other income on line 8b of her 2013 Schedule F. Filing state tax return Accrual method. Filing state tax return   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 state tax return It does not matter whether you filed for a quarterly refund or claimed the entire amount as a credit. Filing state tax return Example. Filing state tax return Patty Green, a farmer who uses the accrual method, files her 2012 Form 1040 on April 15, 2013. Filing state tax return 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 state tax return On Form 4136, Patty claims the $155 as a credit. Filing state tax return She reports the $155 as other income on line 8b of her 2012 Schedule F. Filing state tax return Prev  Up  Next   Home   More Online Publications