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Claim Your Fuel Tax Refund with Form 8849 Schedule 1

Paid federal excise tax on fuel that was not used on the road? You may be able to get that money back. Form 8849 Schedule 1 is used to claim refunds for certain nontaxable fuel uses.

What Is Form 8849 Schedule 1?

Form 8849 Schedule 1 is the IRS schedule used to request a refund for federal excise tax paid on fuel that was later used for a nontaxable purpose. In many cases, fuel tax is already included when fuel is purchased. But if that fuel is not used in a taxable way, the purchaser may be allowed to claim the tax back.

Schedule 1 can be used for several fuel types, including:

  • Gasoline
  • Undyed diesel
  • Undyed kerosene
  • Aviation gasoline
  • Kerosene used in aviation
  • Liquefied petroleum gas
  • Compressed natural gas
  • Diesel-water fuel emulsions
  • Exported fuels
  • Gasoline blendstocks

Who Can File Form 8849 Schedule 1?

You may be able to file Schedule 1 if you purchased the fuel, paid the federal excise tax, and used the fuel for a qualified nontaxable purpose. Common examples include:

Farmers and Agricultural Businesses

Farmers may qualify for a refund on fuel used in off-road farm equipment including tractors, combines, and irrigation pumps.

Bus and Transit Operators

Certain bus operators may qualify when fuel is used in eligible local transit or intercity bus operations.

Nonprofit Educational Organizations

Some nonprofit schools and educational institutions may claim a refund for fuel used in qualified school-related operations.

Government Agencies

Federal, state, and local government agencies may be able to claim a refund when fuel is purchased for approved government use.

Volunteer Fire Departments

Nonprofit volunteer fire departments may qualify for refunds on fuel used in emergency response vehicles.

Details You Need Before Filing

You may need:

  • Business name
  • Employer Identification Number
  • Claim period
  • Fuel type
  • Number of gallons used
  • Type-of-use code
  • Fuel purchase records
  • Fuel usage records
  • Export documents, if the claim is for exported fuel

How to File Schedule 1 with Excise720

1

Log In or Create an Account

Start by creating an Excise720 account or logging in to your existing account.

2

Enter Your Business Information

Add your business name, EIN, address, and other required taxpayer details.

3

Select Form 8849 Schedule 1

Choose Form 8849, then select Schedule 1 for nontaxable fuel use.

4

Add Your Fuel Claim Details

Enter the claim period, fuel type, gallons used, and the correct type-of-use code.

5

Review and Submit

Before filing, review the claim carefully. Once the information is correct, complete the payment and submit.

Frequently Asked Questions

What does nontaxable fuel use mean?

Nontaxable fuel use means the fuel was used in a way that may not be subject to federal excise tax. This may include farming, off-highway business use, certain government use, nonprofit school use, emergency service use, qualifying bus operations, and exported fuel.

Can I file Schedule 1 if my claim is below $750?

Quarterly Schedule 1 claims generally need to meet the IRS minimum claim amount. If your claim is below the required amount, you may need to wait until you have enough eligible claims or file under annual claim rules when allowed.

How far back can I claim a refund?

Fuel tax refund claims must be filed within the IRS allowed time limit. If you are claiming for an older period, check your fuel records and filing dates before submitting.

Do I need receipts to file?

You usually do not submit receipts with the claim. But you must keep records that support the refund. These may include purchase receipts, invoices, fuel logs, and usage records. Exported fuel claims require export proof.

How long will the refund take?

Refund timing depends on IRS processing. Online filing can help reduce delays because the claim is submitted electronically and checked for required information before it is sent.

Ready to File Form 8849 Schedule 1?

If you paid federal excise tax on fuel that was used for a qualified nontaxable purpose, you may be able to claim a refund. Excise720 helps you file Schedule 1 online with guided steps and automatic calculations.