How Is A Fuel Tax Credit Assessed?

The fuel tax credit provides businesses and motorists with a credit for the use of alternative fuels. This credit provides a reduction in the taxes due for an individual or business. Credits are taken against the total taxes due by a taxpayer and reduce the amount of taxes payable.

When Fuel Tax Credits Are Assessed

A fuel tax credit is assessed or claimed when a taxpayer files their tax forms.  This typically takes place on April 15th of each year.  It may take place more frequently for businesses and other filers who pay taxes on a quarterly basis.

How Fuel Tax Credits Are Assessed

An individual taxpayer must file a Form 1040 or 1040A in order to be assessed the credit.  These forms are used to itemize any deductions that taxpayer has due and claim certain credits.  An individual taxpayer that does not itemize will not be able to claim the fuel tax credit against their tax liability.