working with IFTA

that not necessarily true, just buy enough fuel in each state to cover the miles for each state or do as you say subtract the tax to find the actual cheapest fuel.

funny thing , at mercer they pay any ifta we might owe, so we are free to buy wheres its actually cheapest at pump, over all 4 quarters last year, I had a credit of 84 cents total for the year. dang near perfect without even trying. by the way the credit was applied to the purchase of coming years tag, along with 800 bucks in other bonuses

 

Now you're getting into the weeds. OR has a weight/distance tax that you have to file. Don't know the details since we don't go there. I'm only real familiar with the 30 states we have on our cab cards, and OR isn't one of them.

I'd say a search on "Oregon IFTA" would give you better detail.

Also search "IFTA surcharge" and "weight distance tax". Both are mileage based. The surcharge is an additional amount some states (IN, VA, and KY for us, and I know there's one or two more) add to your IFTA filing on a separate line item.

Weight-distance is usually filed direct with the state revenue office on it's own return (not a line in IFTA). In our operating region, I only file that for KY. I think OR, NM, and NY? maybe another one? also have that.

I can't offer a complete answer, but your question has been asked before if you'd rather search than wait for others to chime in.

 

This is just a guess, but check how you accounted for OR. Maybe the problem lies there?

 

First a correction. IN, VA, and KY are the only three states that have a surcharge line.

All I could suggest with a difference on CA fuel tax would be a miscalculation or something. Don't go there, but it ought to be like the other one-line states. Gallons purchased offset taxable gallons calculated off your mileage in that state. Taxable gallons times the rate is the tax. Subtract gallons purchased times the rate.

Maybe double check that you didn't transfer a wrong value from a worksheet and double-check your rates and math.

 

What are you saying isn't true?
There's no reason to buy fuel in each state. You can if you want to, but it's a hassle and you probably aren't keeping your fuel costs as low as you can.

 

I addressed the fact that your objective may not be lowest fuel cost. If you allow your fuel cost to be higher than necessary just so you don't have a refund or owe IFTA money each quarter then you can certainly do that. But choosing to spend more money on expense is less profit.

 

I agree, it absolutely isn't the cheapest taxed fuel costs, assuming pretax is the same. The only way to absolutely ensure you payed the lowest taxed fuel cost, is to net $0 on your IFTA. I'd be willing to put up my trailer title in a bet, that you have never netted $0 on a IFTA return, therefore you have either under or overpaid taxes. My theory is always overpay, it doesn't create less profit if you apply that refund to a expense such as plates. Heck, even if you didn't apply it to anything the money is still their as profit, just not in your bank account.

 

RedForemen stated in an earlier post that you understand IFTA. But I don't think you do.
There is no reason to try to have your quarterly IFTA return come out to $0. The reason is because you will pay the same amount of IFTA no matter what. It doesn't matter if your quarterly return comes out with you having to send in a payment or ask for a return (or to have a surplus rolled over to the next quarter).
Netting $0 on an IFTA retrun isn't netting anything and none of my returns have come out to $0. I wouldn't even bother to try to do that.

I have a trucking business to make a profit. Once I make as much money as I can I have my revenue. Of course all my revenue isn't profit. I have to pay my expenses. After I pay my expenses I'm left with my profit. I'm sure we all understand and follow this part. Revenue - Expense = Profit (or loss)

Fuel is an expense. The biggest expense for most trucking operations except for driver wages (depending on price of fuel affects which is the biggest expense). Either way fuel is a huge cost of operating a truck. So for me and most other trucking businesses we want to buy fuel at the lowest cost possible. You already stated that you don't do that. You don't want to buy the lowest cost fuel. Ok...that's fine. But I want to be as profitable as I can so I buy fuel where it's the lowest cost along the lane(s) I run. For anyone who wants the lowest operating costs, which includes the lowest fuel cost, they would not buy fuel the way you do just to have their quarterly IFTA come out to $0 or any other number. They would, as I do, buy fuel at the lowest cost regardless of the tax paid at the pump.