If you’re a new owner-operator, you may not have filed the IFTA until now. This isn’t a complete guide, but it can help you get started. TruckingOffice PRO gives you a tool to eliminate 99% of the headache that comes along with it.
Because staying on top of IFTA matters is one of the most important duties of a transportation professional, you need to know the hard truth. The IFTA is better than what we used to have, but that doesn’t make it easy. What you need is something to make the task fast and easy, giving you more time to do the one thing that actually puts money in your pocket: driving.
The IFTA Basics
IFTA stands for International Fuel Tax Agreement. It refers to a plan set up between 48 US states and 10 Canadian provinces. (However, it doesn’t apply to Alaska, Hawaii, or the three northernmost provinces.) It serves the following purposes:
- Simplifying the payment of taxes across state and national borders.
- Ensuring that each state or jurisdiction receives its share of tax revenue.
- Reducing the number of decals, forms, etc., that truckers must keep track of.
The IFTA is designed to make tax matters simpler for everyone involved. Filing IFTA reports on a timely basis and making sure your fuel taxes are paid is your responsibility as a transportation professional.
Who the IFTA Applies to
The IFTA applies to you if you meet the following criteria:
- Your truck has a gross vehicle weight (GVW) of 26,000 pounds or has three or more axles or both. For example, if your truck has a GVW of 25,000 pounds but has three axles, then you fall within IFTA jurisdiction. Or say your truck has only two axles but has a GVW of 27,000 pounds – in that case, you are also under the IFTA. This includes so-called “piggyback” combos that have a GVW of at least 26,000 pounds.
- You use the truck across state lines for commercial purposes; i.e. transporting goods.
Personal or recreational vehicles (RV) are not covered by the IFTA.
What the IFTA Requires You to Do
Complying with IFTA basics requires you to do a few important things:
- Display a current IFTA decal on your truck at all times. Each year’s decal expires on January 1st of the following year. The current decal will expire on the first day of next year. The DMV allows a grace period until the end of February to renew the decal. So a driver whose 2022 decal expired would have through February 28, 2023, to get a new one. After this date, drivers who do not comply will be subject to fines.
- Complete and submit an IFTA report every 90 days. The deadlines for these IFTA reports are April 30th, July 31st, October 31st, and January 31st. When the deadlines fall on a holiday or on a weekend, the deadline is usually extended to the following Monday.
- Pay all the IFTA taxes due by the deadlines.
- Maintain all fuel tax records for a period of at least six years.
- Have records on hand in your office at all times.
- Allow a DOT auditor access to these records upon request. The auditor may examine your forms and receipts to ensure that you are complying with the law.
The Key to Complying with the IFTA
Now that you know what IFTA is and how it works, you also have to know how to file IFTA reports properly, so your trucking company can remain compliant. As an owner-operator, this is more important than you can even imagine. Making the smallest mistake on your IFTA trucking forms can result in significant fines and penalties, or even an audit, so you’ll want to avoid IFTA reporting errors at all costs.
As we mentioned earlier, fuel taxes are calculated quarterly and any taxes you owe are due at the end of each quarter, on April 30, July 31, October 31 and January 31. These deadlines can sneak up on you, especially if you are busy running a new business, so don’t wait until the last minute to get your documents in order for filing. Once you have your miles traveled and fuel tax records ready, you can use your IFTA login to file your IFTA trucking reports online on the Department of Revenue’s Fuel Tax System website. The website allows you to process and pay your quarterly fuel tax returns, request new IFTA stickers and manage other important aspects of your IFTA license from the comfort of your home or office.
Above all else, the following things are vital to understanding IFTA:
- Be organized.
- Get organized.
- Stay organized.
That point is so important that it’s worth repeating. Keeping all your records in order and easily accessible is essential for staying on top of fuel tax matters. If you don’t, then the consequences can include heavy fines and other problems. You could be forced off the road until the new decal arrives – losing money with every minute while you wait for the mail.
If you’ve got a truck loan payment to make, you can’t afford time off the road.
IFTA Basics and Software
As a new trucker, you’ve got a variety of software choices that can help you do your IFTA. We strongly recommend that you use software. The hours that you’ll be off the road managing all the arithmetic and forms – not to mention how complicated it gets because every jurisdiction has its unique forms and tax rates – can add to your frustration. When truckers talk about the headaches they get from the IFTA, they’re not lying. This is one task that we should use software to manage!
But if you’re looking for a stand alone product, you’re not making it easier on yourself. Every time you enter information into a computer, you increase the likelihood of an error. This is one place you can’t afford an error, either underpaying the taxman or overpaying and hurting yourself.
It’s a lot smarter to use a trucking software package that manages everything from dispatches to invoices to IFTA forms.
TruckingOffice does it all.
With the right trucking software, you can avoid the IFTA headaches. Don’t wait until the last minute, file IFTA now with TruckingOffice Pro.
TruckingOffice makes keeping track of these regulations simple. Our software’s cutting-edge features do all the busy work for you, making sure that you pay exactly what you owe and not a penny more. And you’ll be surprised at how easy it is to use. Find out for yourself by taking TruckingOffice for a free 30 day test drive starting today. You won’t even need a credit card or checking account to get started.
We have a new truck that does not leave the state. Do we have to register it as IFTA or leave it off?
Once you have an IFTA license you have to report all miles driven even if you have one truck that never leaves the state.
I have a non CDL Box truck And leave out of state. Will I still need to register for IFTA
So every mile counts even if you aren’t pulling a load?
Yes, all miles count for IFTA – loaded and empty miles.
I’m a owner operator not new. My previous employer has always handled this part, however this year because i use my own card to fuel he refuses to issue me one. How much does this software cost. Thank you.
Check out the trucking software pricing then start your FREE TRIAL!
I don’t own a company. I’m leasing a truck thru a company and driving for them. I pay for my own fuel. They said they won’t file IFTA for me. I would have to get my own IFTA account. Can I do that without owning the truck.
Yes. It is just for paying the fuel tax. If you are operating as an owner operator while purchasing the truck you can have your own IFTA account.
I’m hot shot driving with a chevy 1500. I will never reach 26000 lbs even with a trailer. Do I need to worry about ifta?
No. If your GVWR is under 26,000 lbs. then you don’t have to worry about IFTA fuel taxes. For official answers about IFTA contact the IFTA office in your base jurisdiction. You can find their contact info here in our IFTA directory.
I am an owner operator with a truck leased on from Mississippi, I have a Mississippi plate. Now, I am leased on with a carrier company in FL and reside there too. I don’t have the money to get my own tag from Florida they are one of the priciest states. The company I’m leased onto as owner operator does not want to assign me under the ifta account they do not want to provide me a decal and I use their fuel card as well. Aren’t they suppose to be the ones providing me with an ifta decal? I don’t understand. As far as I know the fl ifta law states the carrier must provide the ifta sticker but I’m not sure since the plate is from another state.
The carrier that you are leasing too has the option to add you to their IFTA account, or they can require you to get your own IFTA account.
If I obtain my own IRP and tags but use my company’s insurance and DOT, who keeps up with IFTA?
Each trucking company handles it differently. Sometimes the carrier will handle everything for IFTA and sometimes the owner operator will get their own IFTA stickers and IFTA permits.
My truck has only 2 axles, 4 with trailer weighs less than 26,000 empty, I can only get 45 gallons of fuel in it, I have to fuel all of the time, do I have to get Ifta , seems like a lot of work to prove that the states are getting equal Amy of tax from my truck.
If your truck is rates less than 26,ooo lbs. GVWR then you don’t need to file for an IFTA permit.
I’m a new owner operator and I just got approved for a IFTA license but the state may take up to 2 weeks to send my decal. Can I run loads before getting the decal?
Yes, you can run on the paper IFTA Permit until the IFTA stickers come in the mail.
If I buy fuel in the states that have IFTA does the excess go to states that don’t have IFTA? If not, where does it go?
Do we have to count fuel purchase for reefer?
Hello!
Reefer fuel does not count toward IFTA.
You can still enter it as an expense within the expense column using the Reefer Fuel category-it will transfer to the reefer fuel report on the right side of the dashboard page that way you can still track it.
We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc.
Feel free to start a 30 day free trial at https://www.truckingoffice.com. There’s no obligation!
We have a truck but it does not run. Do we still need to file for IFTA taxes?
Hello,
You would need to contact your local IFTA office for that information.
https://www.truckingoffice.com/ifta/
Please let us know if you need anything else!
I’m carrier, if I hire owner operator with his truck, who gonna be responsible for IFTA of he fuels from his card?
If him, will he present his own IFTA registration for inspection? Is not it supposed to match with carrier DOT?
Each trucking company handles these types of issues differently. The owner operator could have his own IFTA account with his own permits, or he could use your IFTA account and pay for his portion of the IFTA taxes. For more information about IFTA check out our IFTA Resource Directory.
We are own our own truck and drive for a small company I use my fuel card that I pay for some of my fuel a d the company keeps wanting those receipts as well but I need for my taxes why and should I give them my receipts
The company needs to document how many gallons are purchased in every IFTA jurisdiction. You should give them copies of the receipts, so that you can also have them for your tax records.
do owner operators file their own or can they put there gallons and miles on company ifta?
Hello,
You would need to contact your local IFTA office for that information.
https://www.truckingoffice.com/ifta/
We are an invoicing system that helps you stay organized. Once you enter your trips into the system, there are 15 reports on the right side of the dashboard page that you can automatically generate from that. For instance, you can generate profit and loss reports, unit revenue, IFTA, driver settlements, create invoices, expenses and maintenance reports, etc.
Feel free to start a 30 day free trial at https://www.truckingoffice.com/. There’s no obligation!
My husband is working under a company’s authority for the first time. He doesn’t have his authority yet. Can he takes care and pay for the IFTA even without an authority. He believes is paying too much to this company for the service.
Every company handles this differently. It is possible to have your own IFTA permit and file independently, but you would have to check with the company that he is leased on with to prevent any conflicts.
how can i obtain my ifta reports without having to drive to tallahasseee after i’ve submitted them
I’m not sure what you are looking for. If you already filed your IFTA forms then you should have copies of them. If you used TruckingOffice IFTA software then you can run the IFTA Reports at any time. If you need to contact your IFTA jurisdiction then you can find their contact information here http://www.truckingoffice.com/ifta
I’m in the process of opening a sole proprietorship trucking business. is it possible to not register any trucks and therefore not have IFTA and rent a truck from Penske and not have to worry about filing for IFTA ?
If I also use my truck for personal use, do I report off-duty miles as well?
Do I need to have IFTA when I only drive in my home state, as a local driver?
No, you only need IFTA if you drive to other states. IFTA is meant to provide fuel tax revenue to each state that you drive in regardless of where you buy your fuel.
So if I’m not leaving my state I don’t need IFTA?
That’s right because you pay your fuel tax at the pump, and you drive all of the miles in your state.
how does this work for a Hotshot that his work truck also gets used for personal use, do I have to keep track when I’m driving it around town.
You have to keep track of the miles driven when hauling freight. Use beginning odometer readings for every trip to make sure that your IFTA miles are accurate.
We are an owner operator startup and we use the ifta from the company we drive for? Do I also need to file?
It sounds like the company that you drive for will file the IFTA reports. Check with them to make sure that they will include your truck on their IFTA permit.
I’m a new o/o and I’m having a horrible time getting my IFTA. I have a truck sitting cause I can’t get my IFTA.. I’m in south Carolina. Any ideas
Check out our IFTA Resource Center for more information.
Does DEF fall under a fuel expense? Or separate expense of some sort? We are an owner-operator located in NC.
I Just obtained my own plate for my semi and will be leasing on to another company out of state. The company told me to get my own ifta sticker. Is that possible? Or do I have to use that company’s ifta decals because I’m leasing on to them? Thanks in advance for your response
You can get your own IFTA stickers even when you are leased on to another carrier.
We just finalized registration for an IFTA license and paid for the decals. Once paid can we begin operating immediately with just a copy of the license or do we need to wait for the original to be mailed along with the decals?
You can run your truck with the IFTA permit while waiting for your IFTA stickers to come in the mail.
State trooper stop me and have me a violation for not having IFTA but my truck is under 25995 pounds and it’s only 2 axles. What to do ?
We have a couple owner operator units running under their own authority driving local only in MI. However, they purchase fuel with company fuel card which shows up under our IFTA report of the number of gallons being purchased in each state. If we are being charged for the number of gallons being purchased, do we need to have the trucks under our own authority/IRP instead?
If they have their own IFTA permit and stickers then you can exclude those trucks when you file your IFTA tax forms. You could just provide the fuel gallons to those drivers so that they can add it to their IFTA report.
Thank you for your reply. Another quick question (second part from my previous)-we learned the owners in the stage of MI, are not required to have an IFTA/IRP if they specifically running as a local driver but still have MI registration and plates. How does the IFTA reporting work in this case. Do we exclude them since they do not have IFTA decal? Can they still run under out DOT number as well? Thank you again
Yes, they would be exempt from IFTA taxes because the buy all of their fuel in Michigan and drive all of their miles there. IFTA stickers are only needed when you cross state lines. For official answers to specific questions like this one check with the local Michigan IFTA office.
I purchased a 26 ft box truck that’s less than 26,000 pounds and will be crossing state lines. Do I need an IFTA sticker?
Iam an owner operator that is lease under a company when applying for IFTA they ask for dot, do i apply with company dot and can I apply with business name?
No, you just provide the DOT number of the carrier that you are lease to.
If an IFTA licenses was purchased in the first quarter however, the driver never left the state and is a local driver in his state, does the driver have to renew the IFTA license? When I attempt to renew it state: This license cannot be renewed at this time. At least one return with greater than 0 miles for a jurisdiction other than Michigan must be filed within the previous 4 quarters in order to renew. Does this mean he does not need an IFTA license if he stays local?
Yes, IFTA is only needed if the driver goes across the state line.
I have my own authority with all the permit NY, NM, KY, and CT. However, I still have IFTA under a company that I leasing. Who will report IFTA, me or that company?
IF MY TRUCKS HAVE BEEN LEASED TO ANOTHER COMPANY AND THEY HAVE IFTA STICKERS AND I GO INDEPENDENT FROM THEM AND JUST DRIVE IN TEXAS. WILL I HAVE TO CONTINUE TO PREPORT TO IFTA.
If you stay in Texas all the time, then you don’t need an IFTA permit or IFTA stickers.
I’m in the process of activating my authority for general freight /
the way I want to operate is lease on owner operators to my authority. do I as on authority need to have my own IFTA?
You could have your own IFTA permit for the whole fleet, or require each owner operator to have their own IFTA permit.
I am a new owner/operator with new MC . Ifta requires u to have your truck registered with your LLC and I have a loan on it and can’t add my LLC.. what can I do?
If an Owner applies for his own IFTA account does he have to get his own IRP plates as well or can he use the plates of the company he is driving for?
We are a privately held company and do not have trucks for hire. We operate heavy trucks to haul aggregate sold to our customers and equipment used on our projects. We currently file quarterly returns for IFTA but wondering if we are actually required to do so given that we are not a commercial trucking company with vehicles for hire.
I have a new truck. Do I need to make another IFTA application for the truck? Or do I just start reporting the miles and gallons of the two trucks?
If the state is holding me up in getting my ifta can I run with a letter stating this?