Fuel Tax Credit for 2010, 2011

Are you wondering if you qualify for a fuel tax credit? I think we would all agree that everyone wants to claim any and all credits or deductions that we may qualify for.

There are several types of fuels that qualify for this credit, however there are requirements for each type of fuel group. Many of us will want to take advantage of the fuel tax credit. The following list is some of the types of fuel that qualify for the credit:

  • Gasoline and aviation gasoline
  • Un-dyed diesel fuel and Un-dyed kerosene
  • Diesel-water fuel emulsion

Some of the requirements that you must meet for the types of fuel listed are:

Gasoline

  • You must be the ultimate purchaser
  • The fuel must be used on a farm or for farming purposes
  • Used for off-highway business
  • Used as an export
  • Used in a boat engaged in commercial fishing
  • Used in a school bus

Aviation Gasoline

  • Also you must be the ultimate purchaser
  • The fuel must be used on a farm or for farming purposes
  • Used as an export
  • Used in foreign trade
  • Used in certain helicopter and fixed-wing air ambulance
  • Used in commercial aviation

Un-dyed Diesel Fuel and Un-dyed Kerosene and Diesel-water Fuel Emulsion

The following are nontaxable uses of diesel fuel and kerosene:

  • Must be used on a farm for farming purposes
  • In a qualified local bus
  • In a school bus
  • Used as an export

How do I file this credit?

You claim the fuel credit on the “Credits from” line of Form 1040. Also check box b on that line. If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit.

Visit TurboTax Online today to claim your alternative fuel tax credit.

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