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previous page Previous Page: Publication 225 - Farmer's Tax Guide - How To Claim a Credit or Refund
next page Next Page: Publication 225 - Farmer's Tax Guide - Estimated Tax
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p225-068.htm#en_us_publink100073229

Including the Credit 
or Refund in Income(p84)


rule
spacer

Include any credit or refund of excise taxes on fuels in your gross income if you claimed the total cost of the fuel (including the excise taxes) as an expense deduction that reduced your income tax liability.
Which year you include a credit or refund in gross income depends on whether you use the cash or an accrual method of accounting.
taxmap/pubs/p225-068.htm#en_us_publink100073230

Cash method.(p84)


rule
spacer

If you use the cash method and file a claim for refund, include the refund amount in gross income for the tax year in which you receive the refund. If you claim a credit on your income tax return, include the credit amount in gross income for the tax year in which you file Form 4136. If you file an amended return and claim a credit, include the credit amount in gross income for the tax year in which you receive the credit.
taxmap/pubs/p225-068.htm#en_us_publink100073231

Example.(p84)

Sharon Brown, a cash basis farmer, filed her 2008 Form 1040 on March 3, 2009. On her Schedule F, she deducted the total cost of gasoline (including $110 of excise taxes) used on the farm for farming purposes. Then, on Form 4136, she claimed the $110 as a credit. Sharon reports the $110 as other income on 
line 10 of her 2009 Schedule F.
taxmap/pubs/p225-068.htm#en_us_publink100073232

Accrual method.(p84)


rule
spacer

If you use an accrual method, include the amount of credit or refund in gross income for the tax year in which you used the fuels. It does not matter whether you filed for a quarterly refund or claimed the entire amount as a credit.
taxmap/pubs/p225-068.htm#en_us_publink100073233

Example.(p84)

Patty Green, an accrual basis farmer, files her 2008 Form 1040 on April 15, 2009. On Schedule F, she deducts the total cost of gasoline (including $155 of excise taxes) she used on the farm for farming purposes during 2008. On Form 4136, Patty claims the $155 as a credit. She reports the $155 as other income on line 10 of her 2008 Schedule F.
previous pagePrevious Page: Publication 225 - Farmer's Tax Guide - How To Claim a Credit or Refund
next pageNext Page: Publication 225 - Farmer's Tax Guide - Estimated Tax
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication