This may be part of a web portal they provide as a service. Group and add together all your mileages for each state/province your truck has traveled in. If you are using a fuel card, they may provide a report that gives you this information when you log into your fuel card account. Round mileage to the nearest whole miles (e.g. Select your IFTA Quarter & Fuel Type 3. Some companies have lost thousands of dollars in fines and penalties, or worse, closed down their businesses, due to findings from IFTA audits. If you have a pile of fuel receipts, this part will not be much fun. This site is protected by reCAPTCHA and the GooglePrivacy Policy and Terms of Service apply. The taxable miles will be used for IFTA report generation . Round to the nearest whole gallon. his number will be used in the next step of the process. Depending on your state, you may either have an online IFTA filing portal, or you may be required to do a paper filing. You must complete the IFTA Renewal Application form ().This form can be located under forms on our website or you can contact the Motor Carrier help line at 804-249-5130. This is why we recommend you either build out an error proof documentation and reporting process, or leverage a simple and robust solution like Switchboard IFTA Automation to help save you time while keeping you compliant. Add up the number of gallons of fuel you’ve purchased in each state. Enter the name of the trucking company here and press enter. As we’ve showed you above, it can take days or even weeks (for larger fleets) to calculate your mileages for a single reporting quarter. It is important that you understand the IFTA regulations clearly, and have a robust measurement and reporting process that is considered transparent and sufficient by their standards. You can use a tool such as DirectFreight’s online mileage calculator if you choose to go with this method of performing IFTA mileage calculations. You’ll also need to total all miles driven in all states during the quarter for Step 3. To calculate your vehicle’s taxable gallons consumed, divide your total taxable miles by your overall fuel mileage. If you are using Rigbooks trucking software, it will add all this up for you so long as you enter the state purchased when you enter your fuel receipts. Round this figure to the nearest whole number. Click the “ Free Fuel Tax Calculator ” link Enter a name for your truck or company and then press the “Enter” key on your keyboard Click the “Add miles” tab at the top, and then the “Add Miles” button to perform a new mileage entry To keep it simple, here’s a chart that will show you when you need to file your IFTA return by. Divide the taxable miles in Column (C) by the mpg from Line 2.C. Also, you only need to follow all of the steps in the worst case scenario, which is: you’ve decided to file your IFTA return by hand and your state doesn’t have an online IFTA filing portal. You can then subtract your total tax for paid gallons purchased to get your net taxable gallons. Once you have organized the information from all your trips in the 3 month reporting quarter, we’re ready for the next step. Copyright © 2010–2021 Rigbooks, LLC. Total Fuel Tax Owed  =  Sum of tax owed in every state. 22,000 ÷ 4,000 = 5.5 miles per gallon. Record the mileage for each state/province individually on a spreadsheet, as you’ll need to add all miles traveled for a particular state across all your trips. The highway use tax is computed by multiplying the number of miles traveled on New York State public highways (excluding toll-paid portions of the New York State Thruway) by a tax rate. Use odometer readings – if your GPS or ELD keeps track of your odometer readings then use them for calculating your mileage. You can find the 1st quarter 2020 Fuel Tax Rate here. First, you need to calculate how many gallons of fuel you burnt per mile traveled (fuel mileage). Or maybe you are just curious about how it is done. B., be sure to include ALL fuel placed in the tanks of qualified vehicles, this means fuel obtained in both IFTA and Non-IFTA jurisdictions. Certain calculators will ask you for routing preferences as well, which may help improve the accuracy of the estimated mileage. Those are about to come in really handy. DOT Filing Number: Enter your DOT filing number. Use of dispatch systems to calculate miles: The problem with using dispatch systems to calculate your IFTA taxes is a dispatch system calculates miles from pickup of goods to delivery. The easiest way is to use special software (like IFTA calculator) for calculating your quarterly IFTA report. To calculate how many gallons your fleet consumed in each jurisdiction, input your overall fuel mileage to the formula below: Total Miles Driven in State X ÷ Overall Fuel Mileage = Fuel Consumed in State X. This is the most tedious step in the entire process – that’s why we’re going to take you through 3 different methods of calculating your mileages. Jurisdiction: Whether it’s your first time filing an IFTA report or your 50th, we’re here to show you the easiest way to file your fuel tax return – with or without an automated IFTA mileage calculator. We won’t know that upfront, so we will have to calculate it based on what you do know. Calculate the tax required for each state, based on the gallons of fuel you burned there. The last step in terms of mileage calculations is recording the total mileage for the entire quarter. At this rate, it won’t take long for deadhead miles to cut into profits, making it difficult to pay IFTA taxes to get a new IFTA sticker. It can save you endless headaches when dealing with fuel taxes, ensuring that you never overpay or file late again. Multiply your fuel mileage by the miles driven in each state (from step 2), Fuel Usage for [State/Province]  =   Fuel Mileage x Miles Driven in [State/Province]. You will have your total miles or kilometers per jurisdiction for the registration year (July 1 to June 30) with a click of a button. Furthermore, deadheading can be dangerous. Column C - Enter the IFTA taxable miles for each jurisdiction. Please refer to publication 50, California IFTA, Guide to the International Fuel Tax Agreement for more information regarding filing online. For audit purposes, you would want to also keep track of your starting and ending odometer reading for each trip. Divide the total number of gallons of fuel by the total number of miles, Fuel Mileage  =   Total # of gallons of fuel  ÷ Total Mileage. For example, say your truck has entered Washington 3 times in the last quarter: You would add up the mileage for each entrance, resulting in a total of 3654 miles in Washington for this reporting quarter. If you were using a GPS, ELD, or routing software that kept track for you, you need to find the device’s report that gives you the total miles traveled for each state. Use the rates table at https://www.iftach.org/taxmatrix4/choose_tableqnew.php to get the latest fuel tax rates for each state. Add additional destination. The International Fuel Tax Association publishes fuel tax rates by quarter and jurisdiction. All they require you to enter is the state-to-state miles and the total gallons purchased per state and they calculate the rest of the return for you. Let’s start with the traditional and most time consuming method. Your total miles, gallons, and miles per gallon will be displayed along with the amount of IFTA fuel tax you owe. Enter the Miles Traveled & Fuel Purchased per state Now you can sit back and relax as the IFTA calculator app handles all of the complicated federal fuel tax calculators for you. Let’s get started. It’s important to note that even if you don’t buy any fuel in a particular state that you need to include in your report, fuel tax will still be calculated. The Taxable Miles number should match the number used for Taxable Miles in that jurisdiction, with a zero (0) in the Purchased Gallons field. Calculating IFTA is among the most time consuming and tedious tasks that you will do as a fleet manager or individual truck driver – especially if you are still using paper logs. DESTINATION: City, State or Zipcode. The online IRP/IFTA System allows for new registrations, supplemental registrations and renewals. Should I apply for an IFTA license? Before we jump to Method #2, let’s quickly review the benefits and downsides of manually tracking your IFTA mileages. The IFTA Quarterly Tax Schedule on the back of the return must be completed before you can calculate the Total Tax Due. For fleets, we automatically add the mileages per state/province for every truck. Important note! Some states also have a surcharge (currently Indiana, Kentucky, and Virgina). You calculate the fuel mileage for the entire quarter like this: You should have already calculated the Total Miles Driven in All States from Step 1, and the Total Gallons Purchased in All States from Step 2. Third, you can hire an accountant to do your IFTA filing. Yes, the state of Minnesota still requires you to submit a "zero" report even if no fuel or IFTA mileage was traveled in that quarter. 1. If your state has an online IFTA filing portal, you can just enter the totals you got from Steps 1 & 2 into the portal and it will calculate your IFTA return and tell you what you owe. Taxable miles are the miles traveled by your qualifying vehicle(s) per jurisdiction. The amount of tax you owe per state/province: The fuel tax required for each state/province minus how much you have already paid in fuel tax for that province. Some of the states’ forms will have all the states listed out for you and others will have you write in only the states you actually traveled in. All you have to do is add together the Fuel Tax Owed we just calculated for all states, and including any negative values from there. 6. You will need to keep track of how many miles were traveled in each state or province. Odometer readings are the best way to prove to IFTA people that you drove the mileage you have filed. To do this, add up all the miles traveled from every state for the quarter – this number will be used in the next step of the process. Well here is the solution !!!! Make sure to record your odometer reading when: Now, for each corresponding entry and exit for a particular state or province, make sure you subtract the ending odometer reading from the entry reading. Shortest Distance. Some of them may be negative and you subtract those amounts from the total. 1234.5 =1235) Column D- Divide the miles in column C by the average miles per gallon in line E to determine the total taxable gallons used in each jurisdiction. You’ll need to calculate your fuel mileage over the entire quarter. Your Minnesota IFTA license is valid for the calendar year January 1 through December 31. ORIGIN: City, State or Zipcode. To recap, Total Miles include IFTA Miles, Non-IFTA miles, and exemption miles. To calculate “taxable miles,” you will need to know the number of tax-exempt miles traveled in each IFTA jurisdiction. You need to know your fuel mileage across all states for the entire quarter (to two decimal places) in order to complete Step 4. In order to calculate taxable miles in individual jurisdictions, you must first compute your average fuel consumption factor, or miles per gallon (MPG), for travel in all jurisdictions during the tax period. You’ll need to go through each receipt and add the gallons purchased to the total for the state as well as the running total. If you want to skip mileage calculations and access auto-generated reports, click here. If your state requires a paper filing, then you will need to enter the values from each of the 6 steps above into the appropriate places on the form they provided. You can also see a breakdown for each individual truck’s mileage report, which is extremely important for transparency, as well as in the event you get audited. We know this process can be quite tedious and time consuming, so hopefully this article helped alleviate some headache. If you want to save time and simplify your own IFTA reporting process, make sure to request a demo of our IFTA Automation solution, and our team will get you set up with a free trial should you want to give it at try. Finally, you calculate how much tax you actually owe for each state: Some of these values may be negative, which means you bought more fuel in that state than you burned, and therefore you paid more in fuel taxes to that state than you were required to pay. ... You can quickly figure out your IFTA tax amount by simply entering a miles traveled and the fuel purchased for the State. A breakdown of how IFTA works including common scenarios explaining the reason behind charges so you know what to expect. We spend lots of time in calculating IFTA miles!!! Welcome to the new Motor Fuel Tax IFTA online registration application.. First, you can use a tool like Rigbooks that will do the calculations for you. On your IFTA report, you will need to include the following information: Total Miles- The total miles traveled in each jurisdiction for each fuel type Total Taxable Miles- Total miles traveled in each jurisdiction minus the non-taxable miles Total Gallons Consumed- Divide your total taxable mileage by your estimated mpg You can do this by adding up all the miles for each state or subtracting the odometer reading from the beginning of the quarter from the odometer reading at the end of the quarter. Watch the video below to learn more about ProMiles integration Instead of keeping track of your odometer readings every time your truck enters and leaves a province, you can use a trip mileage calculator tool to help estimate the miles traveled for every trip. The last step is to find the difference between the fuel tax you need to pay and the fuel tax you have already paid. https://www.iftach.org/taxmatrix4/choose_tableqnew.php. When entering the data, put a zero (0) in the Total IFTA Miles field. The best IFTA tracking methods including recommended IFTA mileage trackers like the best apps, software, and GPS trackers. You will also want to keep a running total of all gallons purchased in all states during the quarter for Step 3. If you receive an error message, you must correct the error before continuing. Calculate and Print an IFTA Tax Report - Frequently Asked Questions Can I use this form to change my company name? Add up the total number of miles traveled across all states, 3. For states that charge a surcharge, you will not have paid the surcharge until you file your IFTA return, so it will never be a negative amount. It does not capture the miles driven to the pickup point or after the delivery is made, which results in unreported miles. Do not include fuel use trip permit miles. You’ll need to calculate your total gallons. A detailed look at the International Fuel Tax Agreement (IFTA), including who participates in the IFTA and how it started. All of your fuel receipts for the reporting quarter. I know IFTA can be scary and you may think there’s a lot of tedious math involved, but it really isn’t so bad if you follow the steps below. Beyond just looking at the reports, they will rigorously analyze your process. Total Taxable miles do not include applicable exemption miles. Next, add up all the gallons of fuel you purchased in each state. Get out your pen, paper, and calculator – we’re going to be adding up a lot of numbers. Calculate and enter the taxable gallons for each jurisdiction by fuel type. Now that we have one of the most tedious parts of calculating your IFTA, let’s move on to the next step. You can quickly figure out your IFTA tax amount by simply entering a few key details below. Estimate your taxes with ExpressTruckTax's Free IFTA Calculator. Display results as: Normal. You will use the results from Step 4. The mileage calculator you use should then present you with a route, as well as the miles traveled in each state/province. Fuel Tax Required for [State/Prov.] Please enter the origin and destination addresses and click the Calculate Mileage button. -- … Here are a few of the steps they undergo: Make sure you give yourself enough time to collect all the documentation you’ll need for filing your IFTA report. Your Fuel Receipts. You just add it all up across all states for your IFTA return, which is Step 6. Step by step guide on the traditional method of calculating your IFTA tax, How you can save hours with an Automated IFTA Mileage Calculator, Leverage a fully automated IFTA mileage reporting solution, https://www.iftach.org/taxmatrix4/choose_tableqnew.php, An accurate record of your state-by-state (or province) miles for this quarter’s report, Your fuel receipts for each individual state/province, The most recent IFTA tax rates for this quarter (or an automated tool), “Free” – Doesn’t account for hours spent on calculations, Human error – easy to forget to record odometer reading or make mistakes when adding up mileages, Doesn’t scale – the more trips/trucks, the longer it takes, You don’t need to keep track of odometer readings at each entry and exit of state borders, Lack of accuracy – uses estimates for miles per state, Human error – mistakes can easily be made when adding up mileages from each trip report, Doesn’t scale – the more trucks, the more days it may take, Pinpoint accuracy – automatically tracks your odometer reading and location, Scales with you – generates report within a minute for any sized fleet, They will need to understand the ins and outs of your IFTA reporting process, If the auditor discovers any gaps in the process, they will perform a, Test of Compliance – If the way they collect IFTA data is inadequate, the auditor will go through your report in more detail, to ensure you are compliant, If they deem your process or data unreliable, they have the authority to report it to your licensee. C.. Use 2 decimal places (0.00). Click here. If none of these are an option for you, or you just want to do it yourself, then read on and I’ll tell you what you need to do. Before we get into the nitty gritty details of how to calculate your IFTA return, here’s what we are doing at a high level: Your IFTA fuel tax is calculated based on how many gallons of fuel you burnin each state. Calculate Mileage. 4. If you get a negative value for Fuel Tax Owed, don’t worry. Whether you manage your own truck, or have to file IFTA reports for a fleet of hundreds, getting the mileage report you need takes just a few simple clicks. It can save you endless headaches when dealing with fuel taxes, ensuring that you never overpay or file late again. Now it’s time for us to put that to use. An empty trailer weighs less so it is more vulnerable in high winds and could sway, causing accidents. As a result, you will have a mileage number for each time your truck entered a new state. A miles by state calculator can help with your IFTA tax reporting. On that page, click the link to Apply for a new license and decal.Be sure the information that you enter is complete and accurate. of the Mileage and Fuel Summary on the IFTA Tax Return and place that result in Column (D). Base Jurisdiction. For each trip, using the trip calculator of your choosing, input the starting location and the destination. ! Select Continue to go to the next screen. A. by Line 2. 3. Whether you go with the completely manual method of recording odometer readings, or trip mileage calculators, there are drawbacks to each solution. To do this, just add up all the Fuel Tax Owed to Each State values from Step 5. You can easily choose any monthly date range. Looking for other other easy-to-use, time and money saving fleet management / ELD compliance solutions? To calculate the tax required for each state/province, you will need to look at the tax rate for that region. You can use a program like CoPilot Truck V8 for Windows to run a truck route of up to 50 stops and crate a state miles report. If you were tracking your miles manually, you will need to add those up for each state or Canadian province in which you have traveled during the previous quarter. The IFTA Mileage tool will display the mileage by city to help trucking companies figure out miles per state they travel. What if you could get an auto-generated report that takes less than a minute to generate? =   Fuel Tax Required [State/Prov.] You’ll need to calculate the total amount owed on your IFTA return. You will also want to keep a running … Now that you have your Fuel Mileage, you can calculate how much fuel you’ve burnt in each state. You will need to file your IFTA return every quarter. Second, you can use an ELD that provides an IFTA reporting feature, like KeepTruckin. To calculate taxable gallons divide Column d – Taxable Miles by the Fleet Average MPG calculated in Box 5- Fuel Summary . Remember in step 3 where we suggested you write down how much fuel tax you paid in each state? The first thing you’ll want to do is keep track of every individual trip your truck went on. Miles in [State/Prov]    =    Exit Reading in [State/Prov]   —    Entry Reading in [State/Prov]. This allows for scalability and efficiency as teams grow. If you are based in a member jurisdiction and operate a qualified … This is the amount of fuel that you used in each jurisdiction. The following formula is used to calculate the fuel tax owed in each state. That brings us to the third and final option. — Paid [State/Prov.]. Miles Driven in Each State / Overall Mileage = Gallons Burned in Each State Once you have determined the Gallons Burned in Each State you will need to calculate the fuel tax owed in each state. IFTA Mileage Calculator Welcome to the IFTA mileage calculator. 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