IFTA FILING FOR BEGINNERS: A PLAIN-ENGLISH GUIDE

IFTA stands for the International Fuel Tax Agreement, and if you're an owner-operator who crosses state lines, you're required to file quarterly IFTA returns. The good news? It's not nearly as complicated as it sounds. This guide explains everything in plain English.

WHAT IS IFTA AND WHY DOES IT EXIST?

Every state charges a fuel tax that's included in the price at the pump. The problem: you might buy fuel in Texas but drive thousands of miles through Oklahoma, Arkansas, and Missouri. Those states want their share of fuel tax revenue for the roads you used.

IFTA solves this by creating a system where you file one quarterly return in your base state, and that return redistributes fuel tax credits and debts across every state you drove through. Without IFTA, you'd need separate fuel permits for every single state — a logistical nightmare.

WHO NEEDS AN IFTA LICENSE?

You need IFTA if your vehicle has two axles and weighs over 26,000 pounds (or three+ axles regardless of weight) AND you operate in two or more IFTA member jurisdictions. In short: if you have a semi truck that crosses state lines, you need IFTA.

HOW TO GET YOUR IFTA LICENSE

Apply through your base state's Department of Revenue or Motor Carrier Division:

1. Complete the application (online in most states)
2. Provide your USDOT and MC numbers
3. Pay the fee (usually $0-$10)
4. Receive your IFTA license and two cab decals
5. Display decals on both sides of your truck cab

WHAT YOU NEED TO TRACK

Accurate IFTA filing comes down to tracking two things every single day:

1. Miles Driven in Each State

Record your odometer reading every time you cross a state line. Your ELD may do this automatically — check with your provider. Include ALL miles: loaded, empty, deadhead, and personal conveyance.

2. Fuel Purchased in Each State

Save every fuel receipt or use fuel card statements. Record the date, state, gallons purchased, and total cost. Fuel card statements from companies like RTS or TCS work perfectly as documentation.

HOW THE IFTA CALCULATION WORKS

The math is simpler than you think:

1. Calculate your average MPG: Total miles driven ÷ Total gallons purchased
2. For each state: Miles in that state ÷ Your MPG = Gallons "used" in that state
3. Compare: Gallons bought in state vs. gallons used in state
4. Result: Bought more than used = credit. Used more than bought = you owe.

Your online state IFTA portal does all this math automatically — you just enter the miles and gallons per state.

QUARTERLY DEADLINES

• Q1 (Jan-Mar): File by April 30
• Q2 (Apr-Jun): File by July 31
• Q3 (Jul-Sep): File by October 31
• Q4 (Oct-Dec): File by January 31

COMMON IFTA MISTAKES

• Not tracking miles by state — relying on memory leads to errors and audit exposure
• Missing fuel receipts — no proof of purchase = no credit for that state
• Filing late — penalties accrue immediately after the deadline
• Forgetting zero returns — you must file even if you didn't operate
• Not keeping records for 4 years — IFTA audits can go back that far