Table of Contents
What is IFTA?
International Fuel Tax Association(IFTA) is an agreement between the 48 contiguous states of North America & 10 provinces of Canada to simplify motor-fuel tax reporting by interstate motor carriers. The idea behind this association was to reform and consolidate the then-existing ambiguous fuel tax reporting for carriers and jurisdictions.
Here we have discussed a Comprehensive guide to IFTA reporting for your fleets. So go through them and stay with us till the end.
Before the establishment of IFTA, every state had its fuel tax reporting and licensing system. Every carrier needed tax licenses for each jurisdiction in which it operated. The fleet management companies had to report to almost 58 jurisdictions. The reporting system to each jurisdiction was cumbersome to the fleet management industry and jurisdictions.
The Jurisdictions audited any carrier with a license within that jurisdiction. The fleet management industry was subject to having the same data audited by multiple jurisdictions. Additionally, fleet management companies had to apply for tax permits for trucks in their fleet to the authority in each state. This activity was tedious and expensive for all concerned.
When was IFTA established?
To address the issues of inconsistent tax structures, filing periods, rules, and reporting requirements, it was necessary to have a centralized authority. These issues made the representatives of the trucking industry and the government brainstorm to create a centralized system that would address all issues and document them. Subsequently, the International Fuel Tax Association(IFTA) was formed in September 1996, when Congress enacted legislation 49 USC 31701 – 31707.
This legislation gave power to each state to maintain, or enforce a law or regulation, only if it conforms with IFTA. It also detailed how the proportional sharing of fuel taxes would work among member states.
Member States & Provinces of IFTA
Arkansas, Alabama, Arizona, Connecticut, California, Colorado, Florida, Delaware, Georgia, Indiana, Iowa, Illinois, Idaho, Kentucky, Kansas, Louisiana, Maryland, Massachusetts, Maine, Missouri, Michigan, Montana, Minnesota, Mississippi, Nevada, Nebraska, New York, Nevada, New Jersey, Nebraska, North Dakota, New Mexico, North Carolina, Oregon, Ohio, Oklahoma, Rhode Island, Pennsylvania, South Dakota, South Carolina, Texas, Tennessee, Utah, Virginia, Vermont, Wisconsin, Wyoming, West Virginia, Washington.
New Brunswick, British Columbia, Manitoba, Nova Scotia, Newfoundland, Prince Edward Island, Ontario, Saskatchewan, and Quebec.
How does IFTA work?
The idea of creating IFTA was consolidation and ease of doing business. The benefits were meant not only for trucking businesses but also beneficial for states and their jurisdictions for the use of their roads by commercial vehicles. The base state plays an important role, as the responsibility of collecting taxes on fuel use, processing fuel tax returns, and apportioning the funds to all other states rests with them.
Compliance with the following requirements is needed to be a member of IFTA
- Base State Registration
Interstate motor carriers must specify a base state of operation for reporting purposes. This specification eliminates reporting vehicles and paying fuel taxes to multiple states for every vehicle operated by the carrier. The advantage of having a base state registration is that you can carry one license, one set of fuel credentials, and file tax returns with a base state. The base jurisdiction distributes jurisdictional taxes payable by the carriers.
- License & Decal Applications
To acquire an IFTA license, you must fill out the application form used in your base state. IFTA is a base-state agreement. If you have an IFTA license issued in one state, it holds good in every state in the United States (except Alaska and Hawaii). As per the requirements, when applying for a license, you will be required to furnish the following information:
- Proof of residence: You must have proof of a valid physical address (lease or mortgage statement) in your state of residence. You must also prove that you filed income taxes with the Department of Revenue for the previous three years.
- License plate – You must have an International Registration Plan license plate unless you have a farm or transporter plate on your vehicle.
- DOT number – If you are driving for someone else, a copy of your DOT authority lease and your Registrant DOT Number is required.
- Owner/Officer information –
- You will have to provide the names of the owners or officers with their Social Security Numbers.
The licenses are valid from January to December each year. Once your application is processed, the IFTA authority will issue decals for the current year.
An IFTA Decal is a sticker provided by your base jurisdiction when receiving your license. You have to place the decal stickers on each side of the rear side of the vehicle in the lower corner. You will receive two sets of decals per vehicle operated. Record keeping of decals is a good practice. For example:- details like IFTA License year, number of decals used in the fleet, the range of sequence numbers, etc. You should ensure that this information is kept in the file for four years from the date of the license period filed.
IFTA Reporting Requirements
Who is required to report to IFTA?
According to IFTA regulations, for your motor vehicle to be qualified for reporting, it must travel in at least two IFTA jurisdictions. The qualified motor vehicles used to transport people or goods may require IFTA registration in case of the following:
- A truck with three or more axles.
- A truck with two axles with a gross weight of over 11,797 kgs or 26,000 lbs.
- Vehicles having a combined or registered gross weight of more than 26,000 lbs.
As an IFTA licensee, you must submit your fuel tax reports every quarter, every year. File online reports to make your IFTA quarterly tax filing easy. In case of your inability to file reports online, you can use the format of the tax report and mail it to the Fuel tax reporting unit with any required payment.
|Report Period||Covered Period||Due Date|
|1st Quarter||1st January to 31st March||April 30th|
|2nd Quarter||1st April to 30th June||July 31st|
|3rd Quarter||1st July to 30th September||October 31st|
|4th Quarter||1st October to 31st December||January 31st|
Note that if you do not operate during a particular quarter, you will still be required to submit an IFTA report with zero miles. IFTA reporting is critical, and you need to ensure its quarterly compliance. If you fail or get delayed in the report submission, there will be a fine of $50 or 10 percent of the net tax liability, whichever is greater. The late filing penalty will be applicable even if the net tax liability is zero or a credit.
Interest assessment happens on all erring taxes due for each jurisdiction. Calculation of interest is done from the due date of the tax for every month or a fraction of a month until paid. The online filing system will determine the amount of interest owed on the return. If the due date falls on a weekend or state holiday, the due date is carried forward to the next business day. You will receive a confirmation upon filing your return. You have to ensure to keep the filing confirmation for your records.
How is the calculation of IFTA fuel tax reports done?
IFTA Mile Calculations
Once members with IFTA, the onus falls on the fleet managers to ensure that you file all the requisite reports on time. You must ensure that the fleet manager and drivers work closely and record the quantity of fuel consumed in each jurisdiction. There are different methods of calculating mileage:
It is the most traditional way of recording or tracking fuel. You will have to track the miles traveled in each jurisdiction. You will need to record your odometer reading when you cross a state/province border or refuel. For every entry and exit for a state or province, subtract the ending odometer reading from the entry reading. This calculation will give you the miles traveled for that state. It will result in you having a mileage number for each time your truck enters a new jurisdiction.
An illustrated example of the calculation of total mileage per state/province. For example, assume your truck has entered South Carolina 3 times in the last quarter:
|Starting Odometer Reading||Ending Odometer Reading||State|
Your total mileage for each entry will result in 4480 miles for South Carolina for this reporting quarter. However, this method is prone to errors or mistakes while reading the odometer and is time-consuming.
A trip Mileage Calculator helps you to estimate the miles traveled for every trip. Various tools are accessible to complete this work.
First, you will be required to monitor every individual trip your truck went on, including the starting and ending odometer reading of every trip.
- As the next step, enter the start location and destination. Few calculators require routing details which help to improve the accuracy of mileage.
- The mileage calculator should give you the route and miles traveled in each state. Record the mileage for each state/province separately on a spreadsheet, as you will need to add all miles traveled for a particular state across all your trips.
Fuel purchases information
Next required are the gallons of fuel purchased by you in each jurisdiction. The drivers must retain the original receipts or invoices as proof of fuel tax payment. The following specifics must be on the receipt:
- The driver’s name.
- Fuel purchase date.
- The Fuel Vendor name and location.
- Type of fuel purchased.
- Vehicle plate number.
- Gallons of fuel purchase.
- Price per gallon.
IFTA License Renewal Requirements
IFTA licenses must be renewed latest by 31st December every year. You must ensure submission of the following as renewal requirements with an IFTA filing fee of $10.00
- IFTA License Renewal Application.
- Record-Keeping Agreement: IFTA requires all operational records and mileage records supporting the application archived for four years, following the date the IFTA tax return for such operations was due or filed. You must be able to reproduce any electronic data by unit or trip as required during an audit.
- The IFTA agreements require you to include & provide the following information on an IVMR/Driver trip record.
- Company name.
- Fleet number.
- OEN – Operator Equipment Number.
- The trip, start and end dates.
- Trip origin and destination (Including City & State)
- Routes / Highway numbers traveled.
- Odometer, start and end readings for the trip.
- Intermediate trip stops.
- Trip total miles.
- Miles traveled in each jurisdiction.
- Driver name and ID.
- IFTA decal serial number.
- Power of Attorney: If a licensee uses the services of someone else for motor fuel use tax reporting, a Power of Attorney must be filed annually at the time of renewal. By filing a Power of Attorney, the licensee does not get relieved from the legal obligations associated with the license. The licensee will be held responsible for all acts and omissions of the reporting service and payment of taxes.
IFTA Record-Keeping Requirements
IFTA licensees must maintain records to corroborate information reported on quarterly tax returns. You need to keep the following reports & provide the same whenever required.
- Distance Records (P540)
A licensee is required to, maintain records of all the operations of qualified motor vehicles. Your records maintained must support the information reported on the quarterly tax return. At a minimum, your system should include mileage data on each vehicle per trip. Listed below should be part of the supporting information:
- Records of beginning and ending dates of the trip.
- Trip point of origin and destination.
- The route of travel.
- Engine control module (ECM), hub odometer, starting and stopping odometer readings, and any other trip-related component.
- The total trip distance.
- The length of each jurisdiction’s journey.
- The vehicle unit number or vehicle identification number (VIN)
Records produced by a vehicle tracking system, including system based on the global positioning system (GPS) should include the following:
- The initial GPS or other location information for the vehicle to which the records apply.
- The time and date that each GPS or other equipment read each time to confirm the overall distance traveled in each jurisdiction.
- GPS location or other system reading.
- The beginning and ending readings from the engine control module (ECM), hub odometer, odometer, or any other instrument within the period are covered by the records.
- Computed distance between each GPS or other system reading.
- The vehicle’s travel route.
- The measure of distance covered by the vehicle.
- The vehicle identification number.
- Fuel Records (P550)
As a licensee, you must maintain records of all fuel purchased or used during the business. You must have separate totals for each fuel type. Different fuel types include but are not limited to diesel, biodiesel, gasoline, propane, liquid natural gas, compressed natural gas, ethanol, and methanol. The following must be included in the fuel records:
- The date of the fuel purchase.
- Fuel Vendor’s name and address.
- Fuel purchase quantity.
- Type of fuel purchased.
- Fuel price per gallon.
- The fuelled vehicle identification.
- Fuel purchaser name.
Fuel records include receipt, invoice, credit card receipt, and an electronic or digital record of the original receipt or invoice. You will need to maintain original receipts for verification. Receipts with alterations and erasures will be, rejected by the division for tax-paid credits.
- Bulk Fuel Storage (P550)
As a licensee who maintains a bulk fuel storage facility, you may get credit for tax-paid fuel when removed from that storage facility and placed into a qualified motor vehicle if the following records are maintained:
- Receipt for all deliveries.
- Quarterly inventory reconciliation for each tank.
- The capacity of each tank.
- Logs of bulk withdrawals from each location’s individual bulk tanks.
Additionally, you should retain the following records for bulk storage withdrawals:
- Location of the bulk storage of withdrawal.
- Date of withdrawal.
- Quantity of fuel withdrawn.
- Type of fuel withdrawn.
- The fuelled vehicle identification.
IFTA Compliance Reviews
Compliance will happen after the first year of the agreement implementation, at the expense of the member jurisdictions. As an assurance of compliance with the provisions of the agreements, member jurisdictions will permit periodic program of compliance reviews. The respective jurisdictions participate in their share of program compliance reviews each year. There will be a maximum of two compliance reviews per member jurisdiction each year.
IFTA Common Reporting Mistakes
Late Filing of IFTA Report or Not Filing at All
These are the most common forms of reporting mistakes you can come across. In the frantic pace and tight schedules, you will lose sight of filing the report. This oversight can cost you dearly. The penalty amount is $50 or 10% of the net tax due, whichever is greater. It also puts you at risk for an audit with the potential for more scrutiny and expenses.
Estimating Fuel Calculations
Many times, to cut down time and effort, you may indulge in shortcuts for fuel calculations. However, estimating fuel consumed by your fleet when the quarterly IFTA due dates are approaching is a decision that can prove costly. The regulations stipulate accurate readings be submitted.
For refunds or tax credits, receipts showing the gallons of fuel purchased have to be submitted. Any discrepancies in the fuel calculation could result in your fleet audit.
Non-Documentation of Odometer or GPS Issues
The Odometer and GPS play a very crucial role in IFTA reporting. You should note any malfunctions experienced in the Odometer readings or GPS during the reporting period and escalate them. A poorly calibrated gauge or bad tires can impact your odometer reading and give inaccurate mileage readings. These issues can directly impact your reported numbers and become a potential audit issue.
Not Logging Every Mile
A common mistake made by most operators is not logging every mile traveled. It may seem irrelevant for you to report the time taken by drivers to unload during a trip or for personal errands. However, remember these timings still need to be specified. Any gap between mileage in driver trip logs from one day to the next immediately raises questions.
Suspicious Miles Per Gallon
It is generally believed and expected that your miles per gallon will remain the same from one quarter to another. The reportings have to be accurate and transparent. The reported miles per gallon are estimated to fall between 5 to 10 Miles per gallon (MPG) for trucks but remain steady otherwise for each reporting period. There cannot be variances in the figures. Always stay alert and note any reason why it might have happened and be sure to explain the difference. Before any report submission, you must check your numbers for any data entry errors or incorrect records.
Using Non-Compliant Software
Be cautious while procuring any software. Ensure to ask the right questions and that the software uses updated tax tables and approved calculation methods. Ensure that your Electronic Logging Device (ELD) is FMCSA compliant.
Importance of Fleet Management Software for IFTA Calculations
Using manual trip sheets and fuel logs is becoming redundant. Advanced IFTA reporting software that provides multiple reports is available aplenty. An Electronic Logging Device (ELD) is hardware that automatically records the driving time of commercial motor vehicles.
The ELD is connected to the Onboard Diagnostic Port (OBD). It captures data on the engine, speed, miles driven, GPS location, etc. The Federal Motor Carrier Safety Administration (FMSCA) requires commercial drivers using ELD to prepare hours of service (HOS) & records of duty status (RODS)
We have curated a list of the 20 best ELD devices in 2022. So you can go through them and find out the best possible match for you.
Benefits of implementing software for IFTA reporting
- Automated IFTA reporting will leave no room for error. You no longer have to fill up tedious and time-consuming multiple forms.
- The software will collect all data like trip sheets, mileage tax report data, and mileage directly from the vehicle.
- You can eliminate data entry and utilize the time for more productive tasks.
- Automated reporting will eliminate human errors and reduction of heavy fines.
- You can track mileage automatically by jurisdiction and vehicle with precise GPS and Odometer data.
- You can associate fuel purchase data with mileage and view tax paid by jurisdiction.
- Scheduled monthly or quarterly reports to selected recipients.
- The reporting and viewing of historical reports or data anytime can be simplified.
Some IFTA-related FAQs
When does the receipt of new decals happen?
On renewal of your IFTA license annually, the fleet will be issued, with new decals. In case of loss or damage to the decals, you can place a request to your IFTA jurisdiction for new ones. Decal request processing takes place within three days of receipt of the request and is sent by mail the next business day.
Which vehicles are exempt from IFTA?
Recreational vehicles like motor homes, pickup trucks with a camper attached, and bus meant only for personal use and not for any business purpose.
Which miles are non-taxable in IFTA?
Fuel trip permit miles are allowed in some jurisdictions. If you have a fuel permit, any miles driven are non-taxable.
What is the difference between Taxable gallons & Taxed Gallons?
Taxable gallons are calculated, by dividing the total taxable miles by the miles per gallon, while traveling through each jurisdiction. Tax-paid gallons are all fuel purchased at retail stations and placed into any propulsion tank of the capable vehicles. The taxes for such purchases has already been paid, to the jurisdiction of fuel purchase.
Why is it important to report all miles driven to IFTA?
Unless you file the miles driven on the IFTA quarterly tax return, the states where you drove miles without purchasing fuel will not get any taxes.
IFTA reporting is an organized process of motor fuel tax reporting. It provides a platform for the fleet management business that enables filing a consolidated fuel tax return for each quarter within their base jurisdiction. IFTA has revolutionized the traditional and cumbersome old practices of fuel tax reporting. The introduction and acceptance of technology solutions by the fleet management industry have made the reporting process easier. Though the reports are very demanding, the industry has welcomed these practices and will go a long way in building a healthy relationship between IFTA and its stakeholders.
Frequently Asked Questions
Q: Who is required to file IFTA reports?
A: Any motor carrier operating in multiple jurisdictions and with a qualifying vehicle is required to file IFTA reports. Qualifying vehicles are typically those with two or more axles and a gross vehicle weight of 26,001 pounds or more, or any vehicle with three or more axles regardless of weight.
Q: What information is required for IFTA reporting?
A: The information required for IFTA reporting includes the total miles traveled in each jurisdiction, the total gallons of fuel consumed in each jurisdiction, and the total amount of tax paid on fuel in each jurisdiction.
Q: How often do IFTA reports need to be filed?
A: IFTA reports are typically filed quarterly, and must be submitted by the last day of the month following the end of each quarter. For example, the report for the first quarter (January-March) is due by April 30th.
Q: What are the consequences of not filing IFTA reports?
A: Failure to file IFTA reports can result in penalties and fines, and can also lead to the revocation of a carrier’s operating authority.
Q: How can I simplify the process of IFTA reporting?
A: There are several ways to simplify the process of IFTA reporting, including using electronic logging devices (ELDs) or automated tracking systems to track mileage and fuel consumption, and using software specifically designed for IFTA reporting.
Writer at YourBestFleet | + posts
James Johnson is a former truck driver who now works as a writer, specializing in the trucking industry. With over 15 years of experience on the road, James has a unique perspective on the challenges and opportunities faced by truck drivers and the trucking industry as a whole. His writing focuses on issues such as safety, regulation, and the latest industry trends. His work has been featured in several trucking publications and he has received recognition for his contributions to the industry. In his free time, James still enjoys being around trucks and often attends truck shows and other industry events.
How do I manually calculate IFTA? ›
- Total Miles Driven in Each State/Province X ÷ Overall Fuel Mileage = Fuel Consumed in Each State/Province X.
- Fuel Tax Required in Each State/Province X – Fuel Tax Paid in Each State/Province X = Fuel Tax Still Owed to Each State/Province.
- Extra Tips for IFTA Fuel Tax Reporting.
Next, calculate the amount of fuel consumed by measuring miles driven in each jurisdiction versus total gallons purchased. Use this simple formula to calculate fuel consumption: Total Miles Driven ÷ Total Gallons = Overall Fuel Mileage. You'll need to calculate fuel mileage for each applicable jurisdiction.Does Rand McNally do IFTA? ›
Rand McNally's fleet software allows you to keep IFTA reports in one secure place.What is taxable miles? ›
As long as the mileage reimbursement does not exceed the standard IRS mileage rate per mile, it is not taxable. The difference between the mileage rate you receive and the IRS-set rate is considered taxable income.Is there an app to calculate IFTA miles? ›
IFTA Plus Driver App is a mobile tracking app that automatically tracks and logs mileage by state for IFTA Tax business purposes. IFTA Plus Driver App users can now create and export their mileage logs without the need of manual input. IFTA Plus Driver App is offered exclusively for IFTA Plus members.How do you manually calculate fuel efficiency? ›
The easiest way to calculate your gas mileage is to simply divide the number of miles traveled by the number of gallons of gas your vehicle took to refill. In sum, that's miles driven divided by gallons of gas used.What is the formula for fuel expense? ›
To calculate the fuel cost, we use one of the following formulas: Fuel cost = (Distance / Consumption) × Cost per gallon. Fuel cost = (Distance / 100 × Consumption) × Cost per gallon.How do I calculate my full tank? ›
You will need the number of litres it took to fill your tank since the last time you filled it, and the number of kilometres you traveled in between fills. The calculation is: litres / distance * 100 = l/100km. For example: 57 litres / 635 km * 100 = 8.98l/100km.Do local trucks need IFTA? ›
Yes, federal law requires that commercial truck companies abide by IFTA regulations.How do I track miles driven in each state? ›
The best option is to use a robust trucking software that will automatically total your state-by-state miles for you for IFTA. With Rigbooks, you simply run a report to see them. Your ELD (Electronic Logging Device). Most modern ELDs will do this for you, and give you an easy report to see the total miles per state.
Can I drive without IFTA sticker in Texas? ›
Operating a motor vehicle in Texas without a valid IFTA license, interstate trucker license or fuel trip permit may subject you to a penalty under Subchapter E of the Texas Motor Fuels Tax Code.What's the difference between total IFTA miles and taxable miles? ›
To recap, Total Miles include IFTA Miles, Non-IFTA miles, and exemption miles. Total IFTA miles do not include Non-IFTA miles. Total Taxable miles do not include applicable exemption miles. The miles left after removing the Non-IFTA miles and non-taxable miles are the miles you need for calculating your IFTA report.Does mileage reimbursement include gas? ›
FAQ. What does mileage reimbursement cover? All expenditures associated with driving for business are covered by reimbursement rates. Gas, insurance, and wear and tear on the vehicle are all factored in.Can miles be written off on taxes? ›
Current Tax Deductible Mileage Rates
“That mileage rate is a lot lower than the business mileage rate.” For the 2022 tax year, the IRS approved the following standard mileage rates: Business: 58.5 cents per mile from Jan. 1, 2022-June 30, 2022 and 62.5 cents per mile from July 1, 2022 – Dec.
The Keep Truckin electronic logbook app and ELD (Electronic Logging Device) system for truck drivers logs your miles and helps you maintain your duty record status easily. Since ELDs are gaining traction, every truck driver will undoubtedly need one to stay ahead of the curve.Is there an app to calculate fuel cost? ›
Fuelio is simple, easy to use android application to track your mileage, gas consumption and gas costs. Using this App you can track car expenses, auto service, your fill-ups, fuel consumption, car´s mileage, gas costs/gas prices and save money.What app tracks mpg? ›
Fuelly - Track and Compare your MPG.What is the easiest way to calculate efficiency? ›
How Do You Calculate Efficiency? Efficiency can be expressed as a ratio by using the following formula: Output ÷ Input. Output, or work output, is the total amount of useful work completed without accounting for any waste and spoilage. You can also express efficiency as a percentage by multiplying the ratio by 100.What is a good fuel consumption? ›
However, as a rule of thumb, a small city hatchback should be able to achieve an average fuel consumption of around six to seven litres per 100km, a mid-sized SUV will be closer to eight or nine litres per 100km and a full-sized family SUV will use closer to 10 litres per 100km in the real world.What is a good MPG? ›
You want something that is efficient, economical, and has minimal running expenses, which means that you will save a lot of money on fuel and maintenance in the long run. As for a new car, a good MPG is around 50 to 60.
What is the first step to calculate fuel costs? ›
First, divide the distance of the route by your miles per gallon figure to discover how many gallons of gas you will need, then multiply the number of gallons by the price of gas.How do you calculate fuel in trucking? ›
This is where knowing your fuel mileage comes in. Once you know the fuel mileage, then the fuel surcharge is simply $1.00 per gallon divided by your truck's miles per gallon. If your truck gets five mpg, then the fuel surcharge would be $1.00 / 5 mpg = $0.20 per gallon or 20 cents per gallon.How many gallons make a full tank? ›
On average, smaller autos tend to hold about 12 gallons of gas, while larger cars hold as much as 15 gallons or more. It's impossible to immediately say how large your fuel tank is unless you find it out yourself.How do you determine tank size based on flow rate? ›
General Rule of Thumb for Sizing a Pressure Tank
Generally, as a rule of thumb, one can follow these guidelines when sizing a pressure tank: 0-10 GPM: 1 gallon of drawdown per 1 GPM of flow. 10-20 GPM: 1.5 gallons of drawdown per 1 GPM of flow. 20 GPM+: 2 gallons of drawdown per 1 GPM of flow.
Size of an Average Gas Tank
The usual capacity of a gasoline tank is 13 to 16 gallons.
The flow rate formula is the velocity of the fluid multiplied by the area of the cross-section: Q = v × A .Which is correct formula for the flow rate? ›
Summary. Flow rate Q is defined to be the volume V flowing past a point in time t, or Q=Vt where V is volume and t is time.How much fuel flow for 400hp? ›
400 hp x .0800 = 32 gph
Remember, if you are running E85 or Methanol be sure to use those BSFC values in your formula as well as the appropriate lb/gal conversion value for your chosen fuel..
- Create a business plan, finalize company name/ business name, business structure, and business entity type.
- Register your trucking Company.
- Get a non-CDL delivery business compliant vehicle.
- Get your business insured.
- Hire non-CDL drivers.
Establishments primarily engaged in furnishing "over-the-road" trucking services or trucking services and storage services, including household goods either as common carriers or under special or individual contracts or agreements, for freight generally weighing more than 100 pounds.
What is the meaning of IFTA? ›
IFTA – or the International Fuel Tax Agreement – is a way to simplify how truckers and trucking companies pay their fuel taxes. In the past, paying fuel taxes was a time-consuming affair that required truckers to stop at a port of entry to buy a permit.Can you track mileage on Google Maps? ›
Select Measure distance. To create a path to measure, click anywhere on the map. To add another point, click anywhere on the map. At the bottom, you can find the total distance in miles (mi) and kilometers (km).How do independent contractors track miles? ›
The absolute best way to track your mileage is to keep contemporaneous mileage logs—meaning you create your mileage log as you drive each day. That's why a tracking app is so crucial—it takes care of this work for you! If you use the Standard Mileage Rate method, you can't also deduct individual car expenses.How much is IFTA license in Texas? ›
There is no fee for the Texas IFTA license and decals. Once the application is received, if any additional information is needed you will be contacted by phone, so be sure to provide a phone number where you can be reached. It will take 3-4 weeks to receive your license and decals in the mail.What is the grace period for IFTA in Texas? ›
Renewing Your Texas IFTA License
Each year on December 31st, your IFTA license and decals expire. If your renewal license was filed late or if there are delays, Texas allows for a grace period until February of the following year to receive the renewal license.
The application takes about 10 minutes to complete. Once your application is reviewed, approved, and processed, the IFTA license and decal(s) will be mailed to the address provided.What is the best way to calculate IFTA miles? ›
Calculating IFTA Taxable Miles by State
To begin, gather records of total miles driven and fuel amounts purchased in each jurisdiction where your fleet vehicles traveled. The formula is rather simple from this point. Simply divide the total miles driven by total gallons to obtain the overall fuel mileage.
- Keep a notebook and write the odometer when you cross state borders.
- Use a GPS or other device that records state by state miles per quarter.
- Use routing software that tracks state miles.
To calculate the tax-paid gallons, divide the total miles traveled by the total gallons purchased. What is the difference between total miles and taxable miles for IFTA? Taxable miles are those driven by IFTA-approved trucks that must comply with a jurisdiction's fuel tax regulations.Is it better to write off gas or mileage? ›
Here's the bottom line: If you drive a lot for work, it's a good idea to keep a mileage log. Otherwise, the actual expenses deduction will save you the most.
What is the IRS rule for mileage reimbursement? ›
Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.What are the rules for mileage reimbursement? ›
- The reimbursement must stem from services done for an employer, i.e. a trip driven for business - not commuting to and from work.
- Employee mileage and payments must be adequately accounted for.
- Any excess mileage paid out must be returned within a "reasonable period of time".
There's no upper limit to how many miles you can claim a deduction for as long as you drive them for business. There are a few more things to consider though, and we've compiled a brief list.Do you need receipts to write off mileage? ›
The necessary documents depend on which method you use. If you use the standard mileage deduction method, you will need your mileage logbook. If you are using your actual expenses, you will need receipts showing your expenses.How do I figure out how much I will cost per mile? ›
To calculate your cost per mile, simply divide your total expenses for the month by the total number of miles you have driven that month. For example, if your expenses totaled $3,000 and you drove 10,000 miles, your cost per mile is $0.30.What is the formula for total fuel cost? ›
To calculate the fuel cost, we use one of the following formulas: Fuel cost = (Distance / Consumption) × Cost per gallon. Fuel cost = (Distance / 100 × Consumption) × Cost per gallon.What should my fuel flow be? ›
You need the minimum flow rate at your fuel system's operating pressure. For Carburetors, this is between 4-7.5 psi. Fuel Injection will usually be between 35-65 psi.What is the cost per mile for owner operators? ›
As far as the numbers go, the reported average cost per mile in 2022 among all respondents was $2.38, a 36% increase over the $1.75 reported cost per mile in 2020.Is 40 cents a mile good? ›
Average truck driver pay per mile is between 28 and 40 cents per mile. Most drivers complete between 2,000 and 3,000 miles per week. That translates into average weekly pay ranging from $560 to $1,200.How many miles per gallon does a semi-truck get? ›
The average semi-truck gets around 6.5 miles per gallon (MPG) as opposed to the average car, which gets around 25 MPG. The difference in fuel economy between a passenger vehicle and a semi-truck is due to the considerable difference in weight.
What is the average cost per mile for diesel? ›
How much is petrol per mile? On a per mile basis, the fuel costs in the range of 14p - 19p pence per mile for a petrol car; the fuel costs around 15p - 19p pence per mile for a diesel car.How many miles per gallon do diesel trucks get? ›
The way you drive your truck also has an impact on its fuel economy. Many diesel trucks can achieve at least 20 miles per gallon on the highway when not towing or hauling.