Let's Argue About IFTA in the most confusing manner possible

Rigjockey

In Gord we trust!
Supporter
Okay. I need some help from you samrt mother truckers, In understanding IFTA.
I am a company driver, Why do I care? I try to do what is the best interest of my company. The owners are great guys and they pass on money saved to the drivers.
I dont want to start a whole new thread.

Now, Is it best to fuel in the higher fuel taxed states or is it better to get the best fuel price after the tax rate is subtracted from the fuel price?
Are the two related or separate issues.
I know IFTA is very complicated, So bear with me as I try to grasp this F-d up system.
 

Tazz

Infidel
I always figured that it was better to buy the lowest after tax removed. Unless you can pick your route to run cheaper states your tax is gonna be the same no matter what for the miles you run in any given state. With the exception of Oregon I think.

Now Blood Blood can come tell me how wrong I am.
8 8978 can tell us they do it different
And mndriver mndriver can show us 19 bazillion spread sheets
 

AK7

Well-Known Member
I just fuel before I run out.lol
I used to have that figured out,but that was 25 years ago and I'm sure it's all changed.
 

Duck

Bumper sticker slogan goes here
Supporter
Okay. I need some help from you samrt mother truckers, In understanding IFTA.
I am a company driver, Why do I care? I try to do what is the best interest of my company. The owners are great guys and they pass on money saved to the drivers.
I dont want to start a whole new thread.

Now, Is it best to fuel in the higher fuel taxed states or is it better to get the best fuel price after the tax rate is subtracted from the fuel price?
Are the two related or separate issues.
I know IFTA is very complicated, So bear with me as I try to grasp this F-d up system.
Last week I picked up a load in Minnesota.

Delivered in Calumet ****ty, IL

Closest overnight parking was Gary, IN.

Load never had to be in Indiana.

But I got fuel there just to screw with their IFTA ;)

Even though 8 8978 said it wouldn't affect anything. :(
 

Blood

Driveler Emeritus
Supporter
Okay. I need some help from you samrt mother truckers, In understanding IFTA.
I am a company driver, Why do I care? I try to do what is the best interest of my company. The owners are great guys and they pass on money saved to the drivers.
I dont want to start a whole new thread.

Now, Is it best to fuel in the higher fuel taxed states or is it better to get the best fuel price after the tax rate is subtracted from the fuel price?
Are the two related or separate issues.
I know IFTA is very complicated, So bear with me as I try to grasp this F-d up system.
Tazz Tazz pretty much nailed it in one sentence...
but tell him I said he was f'n crazy if it comes up.
:)

I don't recall what the rates in Canuckia are other than HIGH!
I think your federal tax is most of it but it doesn't matter, they're going to get the revenue one way or another.

Federal tax (Murican) is the same on all fuel. I think it's 24.7 cpg on diesel.
The states vary from about 13 cpg to nearly 50 cpg so just subtract the state tax and go with the lowest price.
That really is pretty much all there is to it.

The run I was doing until recently went through MO, IL, IN, & MI.
I don't even know what Michigan's deal is.
The tax rate is only about 28 cpg but the fuel there is always higher than anywhere.
I never buy MI fuel.

IN is 16 cpg on pump and 11 cpg off pump meaning that you pay 16 cpg on the fuel you pump and another 11 cpg on the IFTA filing.
So 16 cpg is all you need to worry about.
I think IN & KY are the only states that still do that stupid crap.

MO is 17 cpg & IL is 42.7 cpg.

On that run I could almost always buy IL fuel for 10-15 cpg more than MO but paying 10 cpg more actually saved me 15 cents because the state tax in IL is 25 cpg higher.
Most of the guys I know would always pay $200-$300 at the end of the quarter to make up the IFTA.
I always got $300-$350 back for overpaying.

IFTA, Inc.

International Fuel Tax Agreement Information, Owner-Operator Independent Drivers Association
 

8978

** Commie Express **
Supporter
Ok, there is no magic bullet for IFTA. If there was there would be phone apps, and tablet programs that would accept your route and tell you were and how much fuel to buy. There are none.

This is how IFTA works.

At the end of each quarter you add up how many miles you traveled and how many gallons you bought and calculate your MPG. That's used in every column of the IFTA worksheet.

So, with that being said. The perfect thing is to owe nothing to IFTA and get no refund. How do you do this you ask? If your truck gets 6mpg and your going to travel 600 miles through Texas then you need to buy 100 gallons in Texas then you owe ZIP. It's as easy as that.

I stopped chasing the Fuel/IFTA thing a long time ago. I buy $300 whenever I need it. I usually get back either $20 or owe $20 to IFTA.

Many companies will tell their drivers when, where and how much fuel to buy so they owe zero.
 

Rigjockey

In Gord we trust!
Supporter
Ok, there is no magic bullet for IFTA. If there was there would be phone apps, and tablet programs that would accept your route and tell you were and how much fuel to buy. There are none.

This is how IFTA works.

At the end of each quarter you add up how many miles you traveled and how many gallons you bought and calculate your MPG. That's used in every column of the IFTA worksheet.

So, with that being said. The perfect thing is to owe nothing to IFTA and get no refund. How do you do this you ask? If your truck gets 6mpg and your going to travel 600 miles through Texas then you need to buy 100 gallons in Texas then you owe ZIP. It's as easy as that.

I stopped chasing the Fuel/IFTA thing a long time ago. I buy $300 whenever I need it. I usually get back either $20 or owe $20 to IFTA.

Many companies will tell their drivers when, where and how much fuel to buy so they owe zero.
Thank you excellent answer, But why do I not want a refund?:confused-96:
 

8978

** Commie Express **
Supporter
Last week I picked up a load in Minnesota.

Delivered in Calumet ****ty, IL

Closest overnight parking was Gary, IN.

Load never had to be in Indiana.

But I got fuel there just to screw with their IFTA ;)

Even though 8 8978 said it wouldn't affect anything. :(
It didn't matter. You make it sound like you did something illegal. In the end your company will get a refund from Indiana and pay for every mile you drove in IL.

If all of you did at least 4 quarters of filings you would probably understand the concept. I freaked the first time I did it and the second!
 

8978

** Commie Express **
Supporter
Thank you excellent answer, But why do I not want a refund?:confused-96:
You'll pay for it on the other end by buying expensive fuel. Usually when fuel is cheap the mileage tax is high. NY, your screwed! Maybe if I post an IFTA worksheet you can see for yourself how much per mile each state charges. Unless you buy enough fuel to offset that mileage you'll pay.
 

Rigjockey

In Gord we trust!
Supporter
You'll pay for it on the other end by buying expensive fuel. Usually when fuel is cheap the mileage tax is high. NY, your screwed! Maybe if I post an IFTA worksheet you can see for yourself how much per mile each state charges. Unless you buy enough fuel to offset that mileage you'll pay.
:thumbsup: Thank you. They do give us the quarterly IFTA reports for our individual trucks. But as I understand it from what you are saying is, A driver will break their balls trying to calculate when it is not worth the effort in the grand scheme of things.
 

8978

** Commie Express **
Supporter
Here is an IFTA worksheet.

Col F is my MPG.
Col D is the miles I traveled in that state
Col G is the amount of fuel I needed based on my MPG to travel through that state.
Col J is how much per mile you pay to travel in the state. $.40 in NY !!!
Col K and M are the same. If it's in red I get a refund


if.jpg
 

8978

** Commie Express **
Supporter
:thumbsup: Thank you. They do give us the quarterly IFTA reports for our individual trucks. But as I understand it from what you are saying is, A driver will break their balls trying to calculate when it is not worth the effort in the grand scheme of things.
Yes! There is a program out there. You pay by the month. It tells you where to buy fuel and how much based on your route. Depending on how many trucks you have you have to hire a staff just to do that.
 

8978

** Commie Express **
Supporter
I'm not going to do the math but the higher your MPG the lower your IFTA will be per quarter. IFTA use to have a cap on your MPG like 6.5mpg. Anyone with a consistent high MPG is a prime candidate for an audit. My MPG last quarter was 3.8 due to my relay valve on my trailer.
 

Blood

Driveler Emeritus
Supporter
Ok, there is no magic bullet for IFTA. If there was there would be phone apps, and tablet programs that would accept your route and tell you were and how much fuel to buy. There are none.

This is how IFTA works.

At the end of each quarter you add up how many miles you traveled and how many gallons you bought and calculate your MPG. That's used in every column of the IFTA worksheet.

So, with that being said. The perfect thing is to owe nothing to IFTA and get no refund. How do you do this you ask? If your truck gets 6mpg and your going to travel 600 miles through Texas then you need to buy 100 gallons in Texas then you owe ZIP. It's as easy as that.

I stopped chasing the Fuel/IFTA thing a long time ago. I buy $300 whenever I need it. I usually get back either $20 or owe $20 to IFTA.

Many companies will tell their drivers when, where and how much fuel to buy so they owe zero.
You obviously abandoned the notion too soon to know wtf you're talking about.
There are no magic bullets, only common sense and keeping as much as you can of what you earn.
Buy the cheapest (pump price) fuel you can after deducting state tax.
That's it!

Depends on where you are (up to a point).
IN (on pump) tax is 16 cpg but IN is generally only about 6-8 cpg lower than IL because they border IL and the price LOOKS cheaper.
IL fuel tax is 43 cpg so if you buy IN fuel for 6 cpg cheaper than IL fuel you are giving away 21 cpg.

Using your example of 100 gallons...
In IN you paid $16 state fuel tax on 100 gallons pumped.
In IL you paid $43 state fuel tax on 100 gallons pumped.
If you paid $8 less in IN you actually pissed away $19 because you get credit for all state tax paid when you file your IFTA.

But what can one expect from a mook who would pay $10 for a damn stupid stick?
;)
 

8978

** Commie Express **
Supporter
You obviously abandoned the notion too soon to know wtf you're talking about.
There are no magic bullets, only common sense and keeping as much as you can of what you earn.
Buy the cheapest (pump price) fuel you can after deducting state tax.
That's it!

Depends on where you are (up to a point).
IN (on pump) tax is 16 cpg but IN is generally only about 6-8 cpg lower than IL because they border IL and the price LOOKS cheaper.
IL fuel tax is 43 cpg so if you buy IN fuel for 6 cpg cheaper than IL fuel you are giving away 21 cpg.

Using your example of 100 gallons...
In IN you paid $16 state fuel tax on 100 gallons pumped.
In IL you paid $43 state fuel tax on 100 gallons pumped.
If you paid $8 less in IN you actually pissed away $19 because you get credit for all state tax paid when you file your IFTA.

But what can one expect from a mook who would pay $10 for a damn stupid stick?
;)
You left out the number of miles traveled in each state.
 

8978

** Commie Express **
Supporter
And the price per gallon.
 

8978

** Commie Express **
Supporter
Difference between IL and IN is around $.10 per gallon or less according to Diesel Boss fuel prices. You really have to do all the math on the IFTA spreadsheet.
 

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