Deciphering the legal jargon and terms found on tax forms is one of the most difficult aspects of filing taxes. One of the most common questions we get is, "What are the differences between the categories?" This is a good question because the type of category your vehicle falls into ultimately decides exactly how much you’re going to have to pay in taxes. It can get dicey. If you input the wrong classification, you may have to pay additional taxes and could be subject to an audit. However, the right classification can save you hundreds of dollars. It’s important to know what category your vehicle falls under so you can avoid any complications or unnecessary audits and get the best tax rates for your vehicle.

Taxable Vehicles

If you’re reading this, you more than likely have a taxable vehicle. This is for every vehicle that weighs more than 55,000 pounds. Also, taxable vehicles travel more than 5,000 miles a year. Almost all of these vehicles fall under the category of taxable vehicles. Every taxable vehicle must submit a form 2290 and any additional paperwork. However, the exact amount of tax depends on whether your vehicle falls into any additional categories.

Suspended Vehicle

A suspended vehicle probably doesn’t mean what you think it means. It doesn’t mean that your vehicle can't drive on the road. It just means that your vehicle doesn’t drive more than 5,000 miles a year. If your heavy vehicle drives less than 5,000 miles a year (or agricultural vehicles that drive less than 7,500 miles a year), then your vehicle is a suspended vehicle. It’s actually a great thing because if your vehicle is a suspended vehicle, you don’t have to pay additional taxes. You are still required to fill out the 2290 and any additional paperwork. However, you are not responsible for the initial taxes, which is a good thing.

Other vehicles could fall into the category of suspended vehicles even if they travel more than 5,000 miles. This includes an off-highway vehicle, a non-transportation trailer, or a blood collector vehicle.

Exempted Vehicle

Exempted vehicles are similar to suspended vehicles in that neither has to pay any additional taxes, but they both still have to submit their 2290 online form. These vehicles are typically government vehicles. These could be federal, state, Indian tribal, or city vehicles. These vehicles will have special government plates and registrations.

Logging Vehicles

These types of vehicles are used exclusively to transport forestry goods. This includes lumber, or timber from a forested site. These vehicles are subject to lower tax rates than standard taxable vehicles. However, it is important to verify and make sure that your vehicle is properly registered as a logging vehicle before you submit your 2290.

Agricultural Vehicles

If your vehicle transports agricultural goods such as crops, feed, seed, poultry, and other agricultural products, you may be classified as an agricultural vehicle. If your vehicle travels less than 7,500 miles, it may be considered a suspended agricultural vehicle. This would require you to not have to pay additional taxes.

Credit Vehicles

Was your vehicle sold, destroyed, or stolen during the tax period? If you paid your annual taxes on a vehicle you don’t have any more, you can use that as a credit towards your next vehicle. The refund amount will vary depending on the date the vehicle left your possession, but it could help you pay your taxes on your new truck.

Finding the Right Category for your Heavy Vehicle

If you’re still not sure which category your vehicle falls under, let our tax experts take a look. They may be able to help you classify your vehicle as an agricultural vehicle or get you the full amount of your credit vehicle. Here at 2290 Online Form, we help drivers like you get the best rate on their taxes. Let us help you today.