What is the Major Purpose of Form 8849? Did your heavy vehicle was damaged after paying 2290 taxes? Then, have filed Form 8849? Form 8849 used to request a credit claim against the heavy vehicles which are sold/stolen/damaged. According to the IRS, the trucker can file Form 8849 to claim the refund amount of tax previously paid directly. Or else, you can deduct the refund amount when paying the following year’s taxes.
Doesn’t know about Form 8849? Don’t worry! We will let you know about the major purpose of the 8849 Tax Form. Additionally, we provide information about who is required to file the form.
What is Form 8849?
IRS Form 8849 used to claim a refund of excise taxes by making use of appropriate schedules. Mostly, individuals use this form in case of theft or destroyed vehicle for which the tax was paid on Form 2290. Moreover, the refund amount depends on when the vehicle was sold, destroyed, or damaged.
For example, Cameron’s truck was stolen after paying 2290 taxes for the previous tax year. He must submit an 8849 Form for a credit request to the IRS to get some of the money back on the truck which was stolen.
Who needs to file an 8849 Form?
There are several reasons for an individual to file Form 8849. The most common reason is when an individual or an industry has traded or sold their truck. If in case, you have sold or traded your truck after paying HVUT for the tax period, then you can claim the credit by filing a request to the IRS. For instance, when you are filing Form 2290 for a new vehicle, then include 8849 for credit request. The credit will be applied towards the new truck. This saves you time and as well as money.
When is a Form 8849 not required along with Form 2290?
As per the IRS rules, you may not always need to file Form 8849 along with 2290 Tax Form. There are few exemptions in excluding Form 8849 credit request. For example, you have filed Form 2290 for a heavy vehicle weighing 55,000 pounds and uses public highways for nearly 5,000 miles. Suddenly, you have noticed that your vehicle didn’t go over 5,000 miles at the end of the tax period.
Then you would file Form 8849 and the IRS will mail you the credit refund to the mentioned business address. If in case, you are filing 2290 return for the same vehicle for the next tax period. Then, mention the credit details when filing the following year’s tax return. If you’re using an e-filing service, the system automatically deducts a credit amount from the total tax due amount. Finally, it provides the estimated tax that you owe to the IRS.
What are the reasons to pick from when filing Form 8849?
Given below are the reasons to pick from when filing Form 8849:
Request a credit claim for the heavy vehicles which are sold or traded after paying road taxes for a tax period. Include this reason when filing Form 8849.
A trucker can file a credit claim for the vehicles which are stolen in a tax year whose HVUT was already paid.
If in case, the trucker’s vehicle is met with an accident and totally damaged, then the trucker can claim a credit on tax paid to the IRS.
Mileage not exceeded
The truck owner has a chance to claim a refund for the prior year’s Heavy Vehicle Use Tax when the heavy vehicle doesn’t exceed 5,000 miles.
Overpayment of tax dues
According to the IRS, the trucker can get the tax amount back when mistakenly paid road taxes for the same vehicle in the same tax year.
Example for filing Form 8849 for overpayment tax dues?
As we know earlier, a new option was added to claim a credit against previously paid 2290 taxes mistakenly i.e., Overpayment of tax dues. For example, if you have filed Form 2290 and paid Heavy Vehicle Use Tax for the vehicle weighing 55,000 pounds in the month of October. A few months later, you have purchased a new heavy vehicle weighing 65,000 pounds and started using it on public highways.
Mistakenly, you have filed Form 2290 for the new vehicle and added the first truck whose HVUT was already paid. According to the IRS, the system will not catch the duplicates if the 2 forms are not identical. Therefore, you have paid 2290 taxes twice for a single-vehicle by not realizing it. Then you have the chance to claim the money back that you overpaid by filing “Form 8849”.
How do you file an 8849 Tax Form online?
Follow the below to file Form 8849 online:
- Firstly, set up a free e-file account with an IRS-authorized e-file provider like Form 2290 filing. Returning users can simply log in by providing an email address and password.
- New users are required to enter the business details by starting a new return. Existing filers can click on the business details which they are requesting the claim.
- Complete the same steps as a normal 2290 Form by selecting FUM, and the tax year.
- Next, click on “8849 Return” instead of Form 2290.
- Now, add the vehicle details on which you want the credit. This includes the VIN number, the reason for filing 8849, the effective date, and the explanation.
- Double-check the information entered in the form and transmit Form 8849 to the IRS.
- Within few minutes, you will receive Schedule 6 to the registered email address.
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