Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Free Site To File State Taxes

Irs GovWwwhrblock Com2013 Amended Tax Return FormFree Tax Filing 2013 Low IncomeWww Irs Gov EfileTax Cut Hr BlockIrs Gov FormsHow Do I File 2010 Taxes1040 Ez 2012Free Tax ReturnsDownload 1040x FormFederal Tax Forms 2012 EzE Filing Income TaxEfile State Tax ReturnIrs Form 1040x InstructionsTax Planning Us 1040Www Hrblock ComWww Irs Gov FreefileH&r Block State TaxesIrs Gov 2012 Tax FormsFree Online 1040ez FilingFree Taxes H And R BlockEz Tax Form 2011E-file State And Federal Taxes For FreeAmending A 2010 Tax ReturnHow To File An Amended Tax Return For 2012Tax Software 2011Filing Tax ReturnIrs 2012 Form 1040aIrs E File 2012FreestatetaxreturnsTurbo Tax 1040xTurbotax Online 2012Free File State TaxesHow To File A 1040x Form To The IrsIrs E FileAmended Tax FormTax Return Form2012 Irs Form 1040ezFillable 1040ez

Free Site To File State Taxes

Free site to file state taxes Index A Accelerated Cost Recovery System (ACRS), MACRS Depreciation (see also Modified Accelerated Cost Recovery System (MACRS)) Effective date, Depreciation Methods Accounting methods Accrual method, Accrual method. Free site to file state taxes Cash method, Cash method. Free site to file state taxes Change of method, Changing your accounting method. Free site to file state taxes Constructive receipt of income, Cash method. Free site to file state taxes , More information. Free site to file state taxes Accrual method taxpayers, Accrual method. Free site to file state taxes ACRS (Accelerated Cost Recovery System) Effective date, Depreciation Methods Active participation, Active participation. Free site to file state taxes Activities not for profit, Duplex. Free site to file state taxes Additions to property, Additions or improvements to property. Free site to file state taxes (see also Improvements) Basis, Increases to basis. Free site to file state taxes , Additions or improvements. Free site to file state taxes MACRS recovery period, Additions or improvements to property. Free site to file state taxes Adjusted basis MACRS depreciation, Adjusted Basis Adjusted gross income (AGI) Modified (see Modified adjusted gross income (MAGI)) Advance rent, Advance rent. Free site to file state taxes Security deposits, Security deposits. Free site to file state taxes Advertising, Types of Expenses Allocation of expenses Change of property to rental use, Payments added to capital account. Free site to file state taxes How to divide expenses, Dividing Expenses Part of property rented, Renting Part of Property, How to divide expenses. Free site to file state taxes Personal use of rental property, Personal use of rental property. Free site to file state taxes , Personal Use of Dwelling Unit (Including Vacation Home) Alternative Depreciation System (ADS) Election of, Electing ADS MACRS, MACRS Depreciation, Table 2-2d. Free site to file state taxes Alternative minimum tax (AMT) Accelerated depreciation methods, Alternative minimum tax (AMT). Free site to file state taxes Amended returns, Filing an amended return. Free site to file state taxes Apartments Basement apartments, Examples. Free site to file state taxes Dwelling units, Dwelling unit. Free site to file state taxes Appraisal fees, Settlement fees and other costs. Free site to file state taxes Assessments for maintenance, Assessments for local improvements. Free site to file state taxes Assessments, local (see Local assessments) Assistance (see Tax help) Assumption of mortgage, Assumption of a mortgage. Free site to file state taxes Attorneys' fees, Settlement fees and other costs. Free site to file state taxes , Increases to basis. Free site to file state taxes Automobiles MACRS recovery periods, Property Classes Under GDS B Basis Adjusted basis, Adjusted Basis Assessments for local improvements, Assessments for local improvements. Free site to file state taxes Basis other than cost, Basis Other Than Cost Cost basis, Cost Basis Decreases to, Decreases to basis. Free site to file state taxes Deductions Capitalization of costs vs. Free site to file state taxes , Deducting vs. Free site to file state taxes capitalizing costs. Free site to file state taxes Not greater than basis, Cost or Other Basis Fully Recovered Fair market value, Fair market value. Free site to file state taxes Increases to, Increases to basis. Free site to file state taxes MACRS depreciable basis, Basis of Depreciable Property Property changed to rental use, Basis of Property Changed to Rental Use C Capital expenditures Deductions vs. Free site to file state taxes effect on basis, Deducting vs. Free site to file state taxes capitalizing costs. Free site to file state taxes Local benefit taxes, Local benefit taxes. Free site to file state taxes Mortgages, payments to obtain, Expenses paid to obtain a mortgage. Free site to file state taxes Cars MACRS recovery periods, Property Classes Under GDS Cash method taxpayers, Cash method. Free site to file state taxes Casualty losses, Exception for Rental Real Estate With Active Participation Change of accounting method, Changing your accounting method. Free site to file state taxes Charitable contributions Use of property, Donation of use of the property. Free site to file state taxes Cleaning and maintenance, Types of Expenses Closing costs, Settlement fees and other costs. Free site to file state taxes Commissions, Types of Expenses Computers MACRS recovery periods, Property Classes Under GDS Condominiums, Condominiums, Dwelling unit. Free site to file state taxes Constructive receipt of income, Cash method. Free site to file state taxes , More information. Free site to file state taxes Cooperative housing, Cooperative apartments. Free site to file state taxes , Cooperatives, Dwelling unit. Free site to file state taxes Cost basis, Cost Basis Credit reports, Settlement fees and other costs. Free site to file state taxes Credits Residential energy credits, Decreases to basis. Free site to file state taxes D Days of personal use, What is a day of personal use? Days used for repairs and maintenance, Days used for repairs and maintenance. Free site to file state taxes Deductions Capitalizing costs vs. Free site to file state taxes effect on basis, Deducting vs. Free site to file state taxes capitalizing costs. Free site to file state taxes Depreciation (see Depreciation) Limitations on, Form 4562. Free site to file state taxes Passive activity losses (see Passive activity) Depreciation, Depreciation of Rental Property, Changing your accounting method. Free site to file state taxes Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS)) Basis (see Basis) Change of accounting method, Changing your accounting method. Free site to file state taxes Change of property to rental use, Property Changed to Rental Use Claiming correct amount of, Claiming the Correct Amount of Depreciation Declining balance method, Depreciation Methods Duration of property expected to last more than one year, What Rental Property Can Be Depreciated? Eligible property, What Rental Property Can Be Depreciated? First-year expensing, Section 179 deduction. Free site to file state taxes MACRS (see Modified Accelerated Cost Recovery System (MACRS)) Methods, Depreciation Methods, Figuring Your Depreciation Deduction Ownership of property, What Rental Property Can Be Depreciated?, Property you own. Free site to file state taxes Rental expense, Depreciation. Free site to file state taxes Rented property, Rented property. Free site to file state taxes Section 179 deduction, Section 179 deduction. Free site to file state taxes Special depreciation allowances, Claiming the Special Depreciation Allowance Straight line method, Depreciation Methods Useful life, What Rental Property Can Be Depreciated?, Property having a determinable useful life. Free site to file state taxes Vacant rental property, Vacant rental property. Free site to file state taxes Discount, bonds and notes issued at (see Original issue discount (OID)) Dividing of expenses (see Allocation of expenses) Dwelling units Definition, Dwelling unit. Free site to file state taxes Fair rental price, Fair rental price. Free site to file state taxes Personal use of, Personal Use of Dwelling Unit (Including Vacation Home), What is a day of personal use? E Easements, Decreases to basis. Free site to file state taxes Equipment rental expense, Rental of equipment. Free site to file state taxes F Fair market value (FMV), Fair market value. Free site to file state taxes Fair rental price, Dividing Expenses, Fair rental price. Free site to file state taxes Fees Loan origination fees, Points, Settlement fees and other costs. Free site to file state taxes Points (see Points) Settlement fees and other costs, Settlement fees and other costs. Free site to file state taxes Tax return preparation fees, Legal and other professional fees. Free site to file state taxes First-year expensing, Section 179 deduction. Free site to file state taxes Form 1040 Not rented for profit income, Where to report. Free site to file state taxes Part of property rented, Renting Part of Property Rental income and expenses, Reporting Rental Income, Expenses, and Losses Schedule E, Schedule E (Form 1040) Form 1098 Mortgage interest, Form 1098, Mortgage Interest Statement. Free site to file state taxes Form 4684 Casualties and thefts, How to report. Free site to file state taxes Form 4797 Sales of business property, How to report. Free site to file state taxes Form 8582 Passive activity losses, Form 8582. Free site to file state taxes , Form 8582 not required. Free site to file state taxes Free tax services, Free help with your tax return. Free site to file state taxes G Gains and losses At-risk rules, At-Risk Rules Casualty and theft losses, Exception for Rental Real Estate With Active Participation Limits on rental losses, Form 4562. Free site to file state taxes Passive activity losses, Passive Activity Limits Rental real estate activities, Exception for Rental Real Estate With Active Participation Sale of rental property, Sale or exchange of rental property. Free site to file state taxes , How to report. Free site to file state taxes General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS)) H Help (see Tax help) Home Main home, Main home. Free site to file state taxes Use as rental property (see Use of home) I Improvements, Table 1-1. Free site to file state taxes Examples of Improvements (see also Repairs) Assessments for local improvements, Assessments for local improvements. Free site to file state taxes Basis, Increases to basis. Free site to file state taxes , Additions or improvements. Free site to file state taxes Depreciation of rented property, Rented property. Free site to file state taxes MACRS recovery period, Additions or improvements to property. Free site to file state taxes Insurance, Types of Expenses Casualty or theft loss payments, Decreases to basis. Free site to file state taxes Change of property to rental use, Property Changed to Rental Use Fire insurance premiums, cost basis, Settlement fees and other costs. Free site to file state taxes Part of property rented, Renting Part of Property Premiums paid in advance, Insurance premiums paid in advance. Free site to file state taxes Title insurance, cost basis, Settlement fees and other costs. Free site to file state taxes Interest payments, Interest expense. Free site to file state taxes (see also Mortgages) Loan origination fees, Points Rental expenses, Types of Expenses L Land Cost basis, Separating cost of land and buildings. Free site to file state taxes Depreciation, Land. Free site to file state taxes Leases Cancellation payments, Canceling a lease. Free site to file state taxes Equipment leasing, Rental of equipment. Free site to file state taxes Limits Passive activity losses and credits, Passive Activity Limits Rental losses, Limits on Rental Losses Loans Assumption fees, Settlement fees and other costs. Free site to file state taxes Charges connected with getting or refinancing, cost basis, Settlement fees and other costs. Free site to file state taxes Low or no interest, Loans with low or no interest. Free site to file state taxes Origination fees, Points Local assessments, Assessments for local improvements. Free site to file state taxes Losses (see Gains and losses) M Missing children, photographs of, Reminders Modified Accelerated Cost Recovery System (MACRS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Additions or improvements to property, Additions or improvements to property. Free site to file state taxes Adjusted basis, Adjusted Basis Alternative Depreciation System (ADS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS Basis other than cost, Basis Other Than Cost Conventions, Conventions Cost basis, Cost Basis Depreciable basis, Basis of Depreciable Property Effective date, Depreciation Methods Excluded property, Excluded Property General Depreciation System (GDS), MACRS Depreciation, Property Classes Under GDS, Figuring Your Depreciation Deduction Nonresidential rental property, Property Classes Under GDS Property used in rental activities (Table 2-1), Table 2-1. Free site to file state taxes MACRS Recovery Periods for Property Used in Rental Activities Recovery periods, Table 2-1. Free site to file state taxes MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property. Free site to file state taxes Residential rental property, Property Classes Under GDS, Residential rental property. Free site to file state taxes Special depreciation allowances, Claiming the Special Depreciation Allowance Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI). Free site to file state taxes Mortgages, Expenses paid to obtain a mortgage. Free site to file state taxes Assumption of, cost basis, Assumption of a mortgage. Free site to file state taxes Change of property to rental use, Property Changed to Rental Use End of, OID, Loan or mortgage ends. Free site to file state taxes Interest, Interest expense. Free site to file state taxes , Property Changed to Rental Use, Renting Part of Property Mortgage insurance premiums, Settlement fees and other costs. Free site to file state taxes Part of property rented, Renting Part of Property N Nonresidential real property, Property Classes Under GDS Not-for-profit activities, Duplex. Free site to file state taxes O Original issue discount (OID), Points, Loan or mortgage ends. Free site to file state taxes P Part interest Expenses, Part interest. Free site to file state taxes Income, Part interest. Free site to file state taxes Passive activity Maximum special allowance, Maximum special allowance. Free site to file state taxes Personal property Rental income from, Property or services. Free site to file state taxes Personal use of rental property, Payments added to capital account. Free site to file state taxes , Personal Use of Dwelling Unit (Including Vacation Home) (see also Property changed to rental use) Placed-in-service date, Placed in Service Points, Types of Expenses, Points, Settlement fees and other costs. Free site to file state taxes Pre-rental expenses, Pre-rental expenses. Free site to file state taxes Principal residence (see Home) Profit, property not rented for, Duplex. Free site to file state taxes Property changed to rental use, Payments added to capital account. Free site to file state taxes Basis, Basis of Property Changed to Rental Use Publications (see Tax help) R Real estate professionals, Real estate professionals. Free site to file state taxes Real estate taxes, Real estate taxes. Free site to file state taxes Real property trades or businesses, Real property trades or businesses. Free site to file state taxes Recordkeeping requirements Travel and transportation expenses, Local transportation expenses. Free site to file state taxes , Travel expenses. Free site to file state taxes Recovery periods, Property Classes Under GDS Rent, Settlement fees and other costs. Free site to file state taxes Advance rent, Advance rent. Free site to file state taxes Fair price, Fair rental price. Free site to file state taxes Rental expenses, Rental Expenses Advertising, Types of Expenses Allocation between rental and personal uses, Dividing Expenses Change of property to rental use, Property Changed to Rental Use Cleaning and maintenance, Types of Expenses Commissions, Types of Expenses Depreciation, Depreciation. Free site to file state taxes Dwelling unit used as home, Dwelling Unit Used as a Home Equipment rental, Rental of equipment. Free site to file state taxes Home, property also used as, Rental of property also used as your home. Free site to file state taxes Improvements, Table 1-1. Free site to file state taxes Examples of Improvements Insurance, Types of Expenses, Insurance premiums paid in advance. Free site to file state taxes Interest payments, Types of Expenses, Interest expense. Free site to file state taxes Local transportation expenses, Types of Expenses, Local transportation expenses. Free site to file state taxes Part of property rented, Renting Part of Property Points, Types of Expenses, Points Pre-rental expenses, Pre-rental expenses. Free site to file state taxes Rental payments, Types of Expenses Repairs, Types of Expenses, Repairs and Improvements Sale of property, Vacant while listed for sale. Free site to file state taxes Tax return preparation fees, Legal and other professional fees. Free site to file state taxes Taxes, Types of Expenses Tenant, paid by, Expenses paid by tenant. Free site to file state taxes Travel expenses, Types of Expenses Utilities, Types of Expenses Vacant rental property, Vacant rental property. Free site to file state taxes Rental income Advance rent, Advance rent. Free site to file state taxes Cancellation of lease payments, Canceling a lease. Free site to file state taxes Dwelling unit used as home, Dwelling Unit Used as a Home Lease with option to buy, Lease with option to buy. Free site to file state taxes Not rented for profit, Not Rented for Profit Part interest, Part interest. Free site to file state taxes Property received from tenant, Property or services. Free site to file state taxes Reporting, Accrual method. Free site to file state taxes , Which Forms To Use Security deposit, Security deposits. Free site to file state taxes Services received from tenant, Property or services. Free site to file state taxes Uncollected rent, Uncollected rent. Free site to file state taxes Used as home, Rental of property also used as your home. Free site to file state taxes Rental losses, Exception for Rental Real Estate With Active Participation (see also Gains and losses) (see also Passive activity) Repairs, Types of Expenses, Repairs and Improvements (see also Improvements) Assessments for maintenance, Assessments for local improvements. Free site to file state taxes Personal use of rental property exception for days used for repairs and maintenance, Days used for repairs and maintenance. Free site to file state taxes S Sale of property Expenses, Vacant while listed for sale. Free site to file state taxes Gain or loss, Sale or exchange of rental property. Free site to file state taxes , How to report. Free site to file state taxes Main home, Sale of main home used as rental property. Free site to file state taxes Section 179 deductions, Section 179 deduction. Free site to file state taxes Security deposits, Security deposits. Free site to file state taxes Settlement fees, Settlement fees and other costs. Free site to file state taxes Shared equity financing agreements, Shared equity financing agreement. Free site to file state taxes Special depreciation allowances, Claiming the Special Depreciation Allowance Spouse Material participation, Participating spouse. Free site to file state taxes Standard mileage rates, Local transportation expenses. Free site to file state taxes Surveys, Settlement fees and other costs. Free site to file state taxes T Tables and figures Improvements, examples of (Table 1-1), Table 1-1. Free site to file state taxes Examples of Improvements MACRS optional tables (Table 2-2d), Table 2-2d. Free site to file state taxes MACRS optional tables (Tables 2-2a, 2-2b, and 2-2c), Tables 2-2a, 2-2b, and 2-2c. Free site to file state taxes MACRS recovery periods for property used in rental activities (Table 2-1), Table 2-1. Free site to file state taxes MACRS Recovery Periods for Property Used in Rental Activities Tax credits Residential energy credits, effect on basis, Decreases to basis. Free site to file state taxes Tax help, How To Get Tax Help Tax return preparation fees, Legal and other professional fees. Free site to file state taxes Taxes Deduction of, Types of Expenses Local benefit taxes, Local benefit taxes. Free site to file state taxes Real estate taxes, Real estate taxes. Free site to file state taxes Transfer taxes, Settlement fees and other costs. Free site to file state taxes Theft losses, Theft. Free site to file state taxes Title insurance, Settlement fees and other costs. Free site to file state taxes Transfer taxes, Settlement fees and other costs. Free site to file state taxes Travel and transportation expenses Local transportation expenses, Types of Expenses, Local transportation expenses. Free site to file state taxes Recordkeeping, Travel expenses. Free site to file state taxes Rental expenses, Types of Expenses Standard mileage rate, Local transportation expenses. Free site to file state taxes U Uncollected rent Income, Uncollected rent. Free site to file state taxes Use of home Before or after renting, Days used as a main home before or after renting. Free site to file state taxes Change to rental use, Property Changed to Rental Use Days of personal use, What is a day of personal use? Fair rental price, Fair rental price. Free site to file state taxes Passive activity rules exception, Exception for Personal Use of Dwelling Unit Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home) Utilities, Types of Expenses, Increases to basis. Free site to file state taxes V Vacant rental property, Vacant rental property. Free site to file state taxes Vacation homes Dwelling unit, Dwelling unit. Free site to file state taxes Fair rental price, Fair rental price. Free site to file state taxes Personal use of, Personal Use of Dwelling Unit (Including Vacation Home) Valuation Fair market value, Fair market value. Free site to file state taxes Prev  Up     Home   More Online Publications
Print - Click this link to Print this page

Understanding your CP2501 Notice

You need to contact us. We've received information not reported on your tax return.


What you need to do

  • Read your notice carefully — it explains the information we received.
  • Complete the notice's response form whether or not the information is right or wrong.

You may want to...

  • Contact the business or person reporting the information if it is wrong. Ask them to correct it.
  • Order a transcript of your return.
  • Make sure your earlier returns don't have the same mistake.
  • Fill out the section on the response form to allow someone (such as an accountant) to contact us on your behalf.
  • Contact us with any unanswered questions you have.
  • Keep a copy of your notice for your files.

Answers to Common Questions

Is the notice a bill?
No. It informs you about the information we've received.

What do I need to do?
Complete the notice's response form.

What do I do if the information is wrong?
The response form has instructions on what to do if the new information is wrong. You also may want to contact whoever reported the information and ask them to correct it.

I want to check a copy of my original return. I don't have one. How can I get one?
You can order a transcript of your return. You also can get one by completing and sending us a Form 4506-T, Request for Transcript of Tax Return.

I don't want a transcript of my return. I want a copy. How can I get one?
Did an accountant or some other person prepare your return? You could ask them for a copy.

I can't get a copy of my return from a tax preparer. How else can I get a copy of it?
You can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return. We charge a fee for return requests.

The information is wrong because someone else is using my name and Social Security number. What can I do?
You can visit our Identity theft information to find out more about what you can do. You also should call us and let us know.

Why did it take you so long to contact me about this matter?
Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.


Tips for next year

You can avoid future problems by:

  • keeping accurate and full records
  • waiting until you get all of your income statements to file your tax return
  • checking the records you get from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they're correct
  • including all your income on your tax return
  • following the instructions on how to report income, expenses and deductions
  • filing an amended tax return for any information you receive after you've filed your return

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about how to file electronically.

Page Last Reviewed or Updated: 28-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free Site To File State Taxes

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