IRS Form 4136 walkthrough (Credit for Federal Tax Paid on Fuels)

[@TaylorBander]

So if i only use fuel for farm use , could you dumb it down on how i do it ? And what would i put on documents so i can send in with the forms?

[@teachmepersonalfinance]

The super simple method would be to identify the areas where you use the farm (i.e. Line 1b indicates the nontaxable use of gasoline on a farm for farming purposes), then attach associated invoices showing the amount that you purchased/used during the year. The IRS doesn't specify exactly what you need to have documentation for, but you should make it clear that the documentation supports the number of gallons (and amount of tax credit) you're entitled to.

[@TaylorBander]

@teachmepersonalfinance thank you

[@teachmepersonalfinance]

Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.com/irs-form-4136-instructions/ If you’re looking for tutorials for other IRS Forms that you can file directly through the IRS website, check out our free fillable forms page: www.teachmepersonalfinance.com/free-fillable-tax-forms/

[@pverbeek4133]

Would the fuel credit apply for the diesel for my son’s ocean fishing charter business? He takes paying customers out onto the Atlantic on a small fishing boat. He has a single-member LLC. He uses a lot of diesel for fishing/business purposes, and it’s not on a highway. He uses the boat (he had two, one backup) sheerly for business purposes.

[@teachmepersonalfinance]

I can't give a definitive answer, but I believe so. Here is my analysis, which your son should take to his accountant (if he doesn't have one, he should get one).Form 4136 refers to a Type of Use table, where certain taxpayers can claim nontaxable use of fuels. "In a boat engaged in commercial fishing," which is probably what your son would qualify under, is type of use #4. IRS Publication 510, Excise Taxes, defines "In a boat engaged in commercial fishing" as: In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. They include boats used in both fresh and saltwater fishing. They don't include boats used for both sport fishing and commercial fishing on the same trip. So, I don't know enough about your son's fishing charter business to state with certainty that he qualifies, but I imagine that if you showed this analysis to an accountant, then the accountant can make an informed decision about being able to claim this fuel credit.

[@KavemanLyrics]

Can this form be filed monthly? I'd rather not have my money tied up for a year

[@teachmepersonalfinance]

According to the form instructions, you cannot file this form monthly. However, you can file either: IRS Form 8849, , Claim for Refund of Excise Taxes, to claim a periodic refund, or Form 720, Quarterly Federal Excise Tax Return, to claim a credit against your excise tax liability.

[@KavemanLyrics]

@@teachmepersonalfinance thank you for the information sir!

[@KavemanLyrics]

@@teachmepersonalfinancecan form 8849 only be filed monthly? How long does it take to receive the refund after filing?

[@KavemanLyrics]

@@teachmepersonalfinance Thank you for the reply! It looks like form 8849 can only be filed quarterly. Is there any form that may be filed monthly for refunds?

[@teachmepersonalfinance]

@@KavemanLyrics I don't know of any form that would allow you to claim credits on a monthly basis, instead of a quarterly one.

[@JessicaLove-on7ii]

Hi sir,can a sole proprietor claim fuel tax this year ?

[@teachmepersonalfinance]

A sole proprietor can claim a credit on Form 4136, if that person meets the criteria. Fuel tax credits will go from your completed Form 4136 to Schedule 3, Line 12. IRS Schedule 3, Additional Credits & Payments Article: www.teachmepersonalfinance.com/irs-schedule-3-instructions/ Video: kzbin.info/www/bejne/o5mXia2Jr9eBm68

[@JessicaLove-on7ii]

THANKS SIR @@teachmepersonalfinance

[@sharon3584]

Hi Sir, we are a S-Corp. How can we file form 4136?

[@teachmepersonalfinance]

You would complete the form as instructed, then enter the net credit directly on Form 1120-S, Line 24c. Attach your completed Form 4136 to your Form 1120-S.

[@sharon3584]

Thank you very very much!❤

[@mukunddayama]

Sir don't mind if you get time please so something on 1118