Form 2290 tax is paid up front for the whole July-to-June period. When a truck leaves your hands partway through, the IRS lets you take back the tax for the months after it was gone — as a credit on your next return, or as a refund.
Who qualifies
You can claim a credit for tax you paid on a vehicle that was:
- Sold before June 1 and not used during the rest of the period.
- Destroyed — damaged by accident or other casualty so badly it isn't economical to rebuild — before June 1 and not used during the rest of the period.
- Stolen before June 1 and not used during the rest of the period.
Lighter loads don't count. The IRS allows no credit, lower tax, or refund for an occasional light or decreased load, or for a discontinued or changed use of the vehicle.
A truck that ran 5,000 miles or less (7,500 for agricultural vehicles) also earns a credit, but on a different timetable — it can only be claimed after the period ends. That case is covered in Form 2290 credits and refunds.
How the credit is figured
The credit is the tax you paid, minus the tax for the months you actually had the truck. Count the months of use from the first day of the month it was first used in the period through the last day of the month it was sold, destroyed, or stolen, then look up that many months in the IRS partial-period table for its weight category.
A worked example using the IRS's own figures: a category V truck (over 75,000 lb) was first used in July, so the full-period tax of $550.00 was paid. It was sold in September and not used again by the seller.
| Step | Amount |
|---|---|
| Tax paid on the truck (full period, category V) | $550.00 |
| Months of use: July, August, September | 3 months |
| Partial-period tax for 3 months, category V (IRS Table I) | $137.50 |
| Credit: $550.00 − $137.50 | $412.50 |
Each truck's credit is figured separately. Logging vehicles use the logging column of the partial-period table (Table II) instead.
What you have to include
The IRS wants an explanation of the facts for each credit. For a vehicle destroyed, stolen, or sold, include:
- The VIN.
- The taxable gross weight category.
- The date of the destruction, theft, or sale.
- The credit worksheet.
- For a sale, the buyer's name and address.
Leave something out and the IRS may disallow the claim — the buyer's name and address on a sale is the item most often missed.
Where and when to claim it
Claim the credit on the next Form 2290 you file, or claim a refund on Form 8849 instead. For a fleet, the next return is often the one for trucks added the following month, so the credit simply reduces that return's tax.
One limit: the credit can't be more than the tax on the return you claim it on. If it is, the excess has to be claimed as a refund on Form 8849 with Schedule 6.
Claim the credit for the truck you sold on the same return and pay less today.
If you bought the truck
The buyer files too. If you bought a used truck privately from a seller who already paid the tax for the period, and you first drove it in the month of the sale, your tax is prorated from the first day of the following month. The IRS example: a category V truck bought on September 9 owes 9/12 of $550, or $412.50, entered with October as the month on line 1. Ask the seller for a copy of their stamped Schedule 1 — it is one way to confirm the tax was paid.
Claiming it online
- Start the return for the business that paid the tax.
- In the credits step, add the truck's VIN, its weight category, the reason (sold, destroyed, or stolen), and the date.
- Add the explanation, including the buyer's name and address for a sale.
- The credit is figured from the IRS partial-period table and capped at the tax on the return; review it with the rest of the return, then pay and submit.