November 23, 2020

Tax Filing 2024

Tax Filing 2024 hey what's up everybody is david mcgill now in this video I had a question from a subscriber that asked if I can do a video explaining how to do if.

The tax returns so in this video I'm going to break down the information you need to complete your quarterly if the tax returns now before I get into the, calculation let me explain what exactly if the even is so it's spelled IFTA and it's an acronym for, International fuel tax agreement now basically what this is is there is a tax that you pay on fuel and, depending on where you purchase your, fuel from versus where you're traveling the state where you paid the tax they may be required to split that money with the states that you drove in so we have to file this, tax return every quarter where we report the miles that we travel in. Each state along with the number of gallons of fuel we purchase in each state so now that, we kind of have a general background of this quarterly, tax filing I'm going to get into the break out of you know how I compute the information needed for its filing now it's gone the actual filing itself is going to vary by, state here in Indiana I filed my if two taxes for myself and, for my clients online through the Indiana portal now if you live in a different state the, portal may be different however the information that you're going to need in order to complete that tax return is gonna, be pretty Universal and standard across the board now the first thing you want to do when you're you know, coming up with your work papers for your tax return is you want to look at how many miles you travel. In each state for a particular quarter now where can you get that information from most companies are required to you know use electronic logs so pending on. Which electronic logging company you're using a lot of times the GPS trackers that are you know installed on. The device they also track how many miles you're driving in each state so every.

Quarter I look at my logs and I run the if the reports where I can see all right here.

Are you know in this example I'm only traveling the Midwest in these five states well I can run my report and see how many miles are travel in each state, so that's, the first thing you know that out that out that I put on my spreadsheet so for example sake let's say, in Indiana I travel you know five thousand miles this quarter Kentucky let's say it was two thousand Ellen Oy let's say five hundred let's say Ohio a thousand let's say Michigan 1,500 so. The total miles that I travel this quarter, we're 10,000 miles and again I was able to get this information from my electronic log reports once we have the miles travel the next important thing that we need is how many gallons of fuel, we purchased in each state now how do we get that information well when you're. Buying fuel you're gonna get a. Receipt so what I do is for my clients who are just you know they don't have a fuel car. And they just buy fuel you know as they need it you know paying in cash they drop off a ton of receipts to me I go. Through each receipt and I separate them by state so I have all of my indiana, fewer seats in one category you know in one box I put all my of Kentucky receipts in another box now I once I have those you know, state separated I then go through and I look at our tally up. How many gallons of fuel were purchased in each state so I'm sitting down with my calculator or my spreadsheet and, I'm just adding up every Indiana receipt the number of gallons that were purchased once I'm done with Indiana you know I'll make you. Know I'll make my my notes in my spreadsheet so let's say, the number of gallons in Indiana purchased were a thousand and then I go on to each other state that I have fuel receipts and I do the same thing there oh you know Kentucky maybe, 500 Illinois I may not have.

Any receipts for Illinois Ohio that could be a hundred and Michigan for example say could be um let's just say 400 so the total gallons, purchased would be a thousand now once I have this information once I know how many miles. I traveled in each state and also how many gallons of fuel I purchased in each state I can, then you know go into the if the tax return and enter that information in the appropriate boxes there's gonna be somewhere on your return it's gonna ask you hey which states. Did you travel in and you'll list those states then it's gonna say how many miles did you travel. In each state you'll go ahead and enter the. Maus travel in the appropriate box then you'll do the same thing for the gallons of fuel that you purchased now a quick tip on the fuel purchases so if you're.

Somebody who so let's walk this out if you buy fuel cash or. You know you use your debit or credit card you know every time and you don't have a, fuel cart if you go in and prepay for your fuel let's say you go in and say hey I want 200 gallons on pump 20 they're gonna give you. A receipt right.

Then and there it's gonna be a prepay receipt and it's gonna show that you spent $200 on fuel and it was for pump 20 most people. Will go out they'll fill up their trucks and then once they're done. They'll leave and they have this receipt.

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