Learn all about HVUT vehicle categories in this simple guide.
If you’re a productivity geek, you know the power of organization and categorization.
It helps you keep a track of your tasks and projects in a certain order – according to the relevance, ease of work, duration, and other variable factors.
This categorization logic appeals to the federal agencies as well.
However, the replicated logic is used not just for organizing the vehicle information but for compliance as well.
In the HVUT context, categorization helps you organize your fleet in accordance with the taxability, logging, tax suspension status, and other variable factors that define the vehicle’s legal status.
This process enables the IRS to identify the vehicles per their categories and tax them (or exempt them) appropriately.
The following discussion will focus on the types of vehicle categories and their impact on HVUT vehicle information reporting.
So, let’s get started.
What Are HVUT Vehicle Categories? How Do They Impact HVUT 2290 Filings?
- What are vehicle categories?
- What are the different types of HVUT vehicle categories?
- How do vehicle categories impact HVUT taxes?
- How to report vehicle categories on HVUT Form 2290?
- How EZ2290 helps
What are vehicle categories?
Vehicle categories are categories assigned to eligible HVUT vehicles based on their HVUT tax qualification status and taxable weight.
The taxable gross weight of a vehicle is 55,000 pounds, which qualifies the vehicle for HVUT tax reporting.
The category of the vehicle at this weight point is Category A, and the vehicle is taxed at $100.
As the weight of the vehicle increases, the category of the vehicle also changes, which impacts the HVUT tax imposed on the vehicle.
So, let’s assume that the weight of the vehicle increases from 55,000 pounds to 61,000 pounds, then the new vehicle category would be Category ‘G’ and the vehicle will be taxed at $232.
Vehicle categorization broadly defines two types of vehicles – “taxable” and “tax suspended”.
These vehicles are designated by the corresponding alphabets, such as A’, ‘W’, ‘C’, and so on.
This categorization helps the IRS identify vehicles as either taxable or suspended.
What are the different types of HVUT vehicle categories?
There are essentially 23 categories in HVUT tax information reporting.
Category A to Category V vehicles are further categorized as “taxable”.
Category W vehicles are non-taxable.
You can see the vehicle categories as listed on IRS Form 2290.
Image caption: EZ2290: IRS Form 2290 HVUT Vehicle Category Chart
Category ‘A’ to Category ‘V’ Vehicles
- These vehicles are taxable.
- The weight range of these vehicles starts at 55,000 pounds, which is the base taxable weight that qualifies a vehicle for HVUT.
- Vehicles weighing more than 55,000 pounds are identified with their designated vehicle categories.
- If the taxable gross weight of a vehicle changes in a year, then the category of the vehicle also changes to the default.
Category ‘W’ Vehicles
- Category ‘W’ vehicles are suspended from taxes.
- If the gross taxable weight of the vehicle decreases to less than 55,000 pounds or if the mileage use limit of the vehicle is less than 5000 miles (for non-agricultural vehicles) and 7500 miles (for agricultural vehicles), then you need to report such vehicles on HVUT 2290 Form as “tax suspended” vehicles.
How do vehicle categories impact HVUT taxes?
There are a variety of vehicles that are reported on HVUT forms, including agricultural vehicles, non-agricultural vehicles, logging vehicles, non-logging vehicles, credit vehicles, and suspended vehicles.
Each of these vehicles is designated by a certain category. This category has a corresponding tax rate as seen above.
It’s fair to say that the vehicle categorization directly impacts the HVUT tax imposition on the vehicle.
If one of the two changes, the other also changes.
How to report vehicle categories on HVUT Form 2290?
Reporting vehicle categories on Form 2290 is relatively easy.
All you need is the accurate figure of the taxable gross weight of the vehicle and the number of vehicles in the specific weight range.
Just enter the number of the vehicles in the “tax computation” section of the IRS 2290 Form, and you’re good to go.
Let’s say that you own a fleet.
You have 2 heavy trucks that weigh 56,000 pounds each (Category B).
You have a heavy-duty truck that weighs 65,000 pounds (Category K)
You also have a vehicle that is under-utilizing its mileage limit (Category W).
Just enter the number of vehicles in the relevant columns per the logging status and the tax period, and compute the tax.
You don’t have to go through humongous paperwork to report the vehicle category.
Vehicle categories are pre-defined on Form 2290.
However, you will need to enter the vehicle categories on Schedule 1 of Form 2290 along with the vehicle identification number.
How EZ2290 Helps
Did you know that thousands of trucking businesses eFile their HVUT 2290 returns online with EZ2290?
EZ2290, an IRS-authorized eFile provider, powers 10,000+ trucking companies across the U.S.
With EZ2290, businesses can easily file their 2290 returns online and get the IRS Form 2290 Schedule-1 instantly.
- Automatic HVUT tax calculations
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And much more.
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