Location: Carolina beach, nc
Tue Jan 26, 2021 9:22 am
So our crew has been saving gas receipts since 2014 and getting fuel road tax back every year. I got audited back in November for the last three years and I learned some things and figured I would pass it along. I'm a pretty organized person so the audit went smoothly, I gave the auditor my receipts for the past three years and a excel sheet documenting the fuel purchased for our vessel. I got the audit results back last week and looks like we owe them a few hundred dollars due to a simple mistake. Every time you get a receipt for boat fuel it must have product purchased and gallons on it. In the past we've pre-paid from time to time with cash and the receipt just showed the monetary amount and that didn't suffice. The product purchased and gallons also can't be hand written, needs to be a print out.
With our new to us boat in the last two years we've been operating it 200 hours a year and burning right about 2000 gallons per year so we get a decent check back and the end of the year for an "free" upgrade. Since 2014 we've burned 8,500 gallons, crazy to think how much full time guys must burn.
Just figured I would pass the info along to help you guys out who do this also.
Location: Raleigh/Atlantic Beach
Wed Jan 27, 2021 8:31 am
I was just wondering if this was for state tax and if any refund you get from the state for the fuel must be claimed on your federal return as income. And if you have to claim any state refund as income to the federal return, does it offset any amount of refund you got back from the state.
Sailfish 2660 w/twin Yamaha 150 4 strokes.
Key West 2300CC Bluewater
Raleigh/Atlantic Beach NC.
Wed Jan 27, 2021 9:15 am
Yes. Gas tax refunds refunds are claimed as income on State and Federal tax returns
Location: Pittsboro, NC
Wed Jan 27, 2021 1:09 pm
Then I don't think it could offset fully. look at it this way....
Say you had $1000 worth of gas for the boat bought from street pumps. Lets say that included $100 worth of road tax (I'm making these #s up so apologies if the percent is grossly different than 10%). You apply for the refund from the state and get $100 back from the state. But you now have to list that as income on the federal level and have to pay tax on that $100 so you're out $15.
Net gain $85.
Unless the federal tax rate on the state refund is 100%, you'll get some money back that you get to keep.
Wed Jan 27, 2021 1:28 pm
Gas tax refund isn't 'income', but merely a return of over-payment. Individual road taxes on fuel are not reported to IRS/DOR, nor is a return of tax due to off-road use. WTS, business deductions are a whole different animal ...
Wed Jan 27, 2021 5:30 pm
Sorry for the misinformation.I've always had to file as a business
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Fuel Receipt Road Tax Refund - SaltwaterCentral.Com