File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

State Income Tax Charts

Myfreetaxes ReviewForm 10401040x 2010Amending Federal Tax ReturnsState Income TaxIrs Tax FormsEitcIrs Form 1040 VFree 1040ez InstructionsIrs 2011 Tax Return Forms2013 Tax Forms 1040ezHelp Me File 1040ezFree State ReturnsE File A 1040x1040ez Tax Table1040ez Form BookletH&r Block State TaxesWww Irs Gov 1040xIrs Tax 1040ezI Need 2011 Tax FormsFree 2008 Tax SoftwareH&r Block Taxes Online1040ez Forms 2013How To File 2010 Tax ReturnsFreetaxTurbo Tax Amended ReturnState Income Tax ReturnAmmended Tax ReturnHow Do I Amend My 2012 TaxesH&rblock TaxesFree Income Tax ReturnIrs Tax TablesRevised Tax ReturnIrs 2012 Tax Forms 1040 Instructions1040 Ez Tax ReturnIt 1040xHow To Amend Federal Tax Return 2012File Taxes If UnemployedInstructions For 1040x1040ez 2012

State Income Tax Charts

State income tax charts 8. State income tax charts   Paying Tax Through Withholding or Estimated Tax Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Notification of Alien Status Withholding From CompensationWithholding on Wages Withholding on Pensions Withholding on Tip Income Independent Contractors Withholding From Other IncomeTax Withheld on Partnership Income Withholding on Scholarships and Fellowship Grants Income Entitled to Tax Treaty BenefitsStudents, teachers, and researchers. State income tax charts Tax Withheld on Real Property Sales Social Security and Medicare TaxesStudents and Exchange Visitors Agricultural Workers Self-Employment Tax International Social Security Agreements Estimated Tax Form 1040-ES (NR)Fiscal year. State income tax charts Introduction This chapter discusses how to pay your U. State income tax charts S. State income tax charts income tax as you earn or receive income during the year. State income tax charts In general, the federal income tax is a pay as you go tax. State income tax charts There are two ways to pay as you go. State income tax charts Withholding. State income tax charts If you are an employee, your employer probably withholds income tax from your pay. State income tax charts Tax may also be withheld from certain other income—including pensions, bonuses, commissions, and gambling winnings. State income tax charts In each case, the amount withheld is paid to the U. State income tax charts S. State income tax charts Treasury in your name. State income tax charts Estimated tax. State income tax charts If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. State income tax charts People who are in business for themselves generally will have to pay their tax this way. State income tax charts You may have to pay estimated tax if you receive income such as dividends, interest, rent, and royalties. State income tax charts Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. State income tax charts Topics - This chapter discusses: How to notify your employer of your alien status, Income subject to withholding of income tax, Exemptions from withholding, Social security and Medicare taxes, and Estimated tax rules. State income tax charts Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 901 U. State income tax charts S. State income tax charts Tax Treaties Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) W-8ECI Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States W-9 Request for Taxpayer Identification Number and Certification 1040-ES (NR) U. State income tax charts S. State income tax charts Estimated Tax for Nonresident Alien Individuals 8233 Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual 8288-B Application for Withholding Certificate for Dispositions by Foreign Persons of U. State income tax charts S. State income tax charts Real Property Interests 13930 Application for Central Withholding Agreement See chapter 12 for information about getting these publications and forms. State income tax charts Notification of Alien Status You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold the correct amount of tax from your wages. State income tax charts If you are a resident alien under the rules discussed in chapter 1, you must file Form W-9 or a similar statement with your employer. State income tax charts If you are a nonresident alien under those rules, you must furnish to your employer Form 8233 or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is subject to graduated withholding at the same rates as resident aliens or U. State income tax charts S. State income tax charts citizens. State income tax charts If you are a resident alien and you receive income other than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar statement with the withholding agent (generally, the payer of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. State income tax charts If you receive this type of income as a nonresident alien, file Form W-8BEN with the withholding agent so that the agent will withhold tax at the 30% (or lower treaty) rate. State income tax charts However, if the income is effectively connected with a U. State income tax charts S. State income tax charts trade or business, file Form W-8ECI instead. State income tax charts Withholding From Compensation The following discussion generally applies only to nonresident aliens. State income tax charts Tax is withheld from resident aliens in the same manner as U. State income tax charts S. State income tax charts citizens. State income tax charts Wages and other compensation paid to a nonresident alien for services performed as an employee are usually subject to graduated withholding at the same rates as resident aliens and U. State income tax charts S. State income tax charts citizens. State income tax charts Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to graduated withholding. State income tax charts Withholding on Wages If you are an employee and you receive wages subject to graduated withholding, you will be required to fill out a Form W-4. State income tax charts Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, present, or future services and for which you are not claiming a tax treaty withholding exemption on Form 8233 (discussed later under Income Entitled to Tax Treaty Benefits). State income tax charts These are services you are required to perform as an employee and as a condition of receiving the scholarship or fellowship (or tuition reduction). State income tax charts Nonresident aliens should fill out Form W-4 using the following instructions instead of the instructions on the Form W-4. State income tax charts This is because of the restrictions on a nonresident alien's filing status, the limited number of personal exemptions a nonresident alien is allowed, and because a nonresident alien cannot claim the standard deduction. State income tax charts Enter your social security number (SSN) on line 2. State income tax charts Do not enter an individual taxpayer identification number (ITIN). State income tax charts Check only “Single” marital status on line 3 (regardless of your actual marital status). State income tax charts Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, or South Korea, or a U. State income tax charts S. State income tax charts national. State income tax charts Write “Nonresident Alien” or “NRA” on the dotted line on line 6. State income tax charts You can request additional withholding on line 6 at your option. State income tax charts Do not claim “Exempt” withholding status on line 7. State income tax charts A U. State income tax charts S. State income tax charts national is an individual who, although not a U. State income tax charts S. State income tax charts citizen, owes his or her allegiance to the United States. State income tax charts U. State income tax charts S. State income tax charts nationals include American Samoans, and Northern Mariana Islanders who chose to become U. State income tax charts S. State income tax charts nationals instead of U. State income tax charts S. State income tax charts citizens. State income tax charts See Withholding on Scholarships and Fellowship Grants later, for how to fill out Form W-4 if you receive a U. State income tax charts S. State income tax charts source scholarship or fellowship grant that is not a payment for services. State income tax charts Students and business apprentices from India. State income tax charts   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction. State income tax charts You can claim an additional withholding allowance for your spouse only if your spouse will have no gross income for 2013 and cannot be claimed as a dependent on another U. State income tax charts S. State income tax charts taxpayer's 2013 return. State income tax charts You may also claim an additional withholding allowance for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. State income tax charts S. State income tax charts citizens. State income tax charts Household employees. State income tax charts   If you work as a household employee, your employer does not have to withhold income tax. State income tax charts However, you may agree to voluntary income tax withholding by filing a Form W-4 with your employer. State income tax charts The agreement goes into effect when your employer accepts the agreement by beginning the withholding. State income tax charts You or your employer may end the agreement by letting the other know in writing. State income tax charts Agricultural workers. State income tax charts   If you are an agricultural worker on an H-2A visa, your employer does not have to withhold income tax. State income tax charts However, your employer will withhold income tax only if you and your employer agree to withhold. State income tax charts In that case, you must provide your employer with a properly completed Form W-4. State income tax charts You can find more information about not having tax withheld at www. State income tax charts irs. State income tax charts gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. State income tax charts Wages Exempt From Withholding Wages that are exempt from U. State income tax charts S. State income tax charts income tax under an income tax treaty are generally exempt from withholding. State income tax charts For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits , later. State income tax charts Wages paid to aliens who are residents of American Samoa, Canada, Mexico, Puerto Rico, or the U. State income tax charts S. State income tax charts Virgin Islands may be exempt from withholding. State income tax charts The following paragraphs explain these exemptions. State income tax charts Residents of Canada or Mexico engaged in transportation-related employment. State income tax charts   Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their wages. State income tax charts These persons either: Perform duties in transportation service between the United States and Canada or Mexico, or Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or bridge crossed by, or crossing, the boundary between the United States and Canada or the boundary between the United States and Mexico. State income tax charts    This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad. State income tax charts   To qualify for the exemption from withholding during a tax year, a Canadian or Mexican resident must give the employer a statement in duplicate with name, address, and identification number, certifying that the resident: Is not a U. State income tax charts S. State income tax charts citizen or resident, Is a resident of Canada or Mexico, whichever applies, and Expects to perform duties previously described during the tax year in question. State income tax charts   The statement can be in any form, but it must be dated and signed by the employee and must include a written declaration that it is made under the penalties of perjury. State income tax charts Residents of American Samoa and Puerto Rico. State income tax charts   If you are a nonresident alien employee who is a resident of American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally not subject to withholding unless you are an employee of the United States or any of its agencies in American Samoa or Puerto Rico. State income tax charts Residents of the U. State income tax charts S. State income tax charts Virgin Islands. State income tax charts   Nonresident aliens who are bona fide residents of the U. State income tax charts S Virgin Islands are not subject to withholding of U. State income tax charts S. State income tax charts tax on income earned while temporarily employed in the United States. State income tax charts This is because those persons pay their income tax to the U. State income tax charts S. State income tax charts Virgin Islands. State income tax charts To avoid having tax withheld on income earned in the United States, bona fide residents of the U. State income tax charts S. State income tax charts Virgin Islands should write a letter, in duplicate, to their employers, stating that they are bona fide residents of the U. State income tax charts S. State income tax charts Virgin Islands and expect to pay tax on all income to the U. State income tax charts S. State income tax charts Virgin Islands. State income tax charts Withholding on Pensions If you receive a pension as a result of personal services performed in the United States, the pension income is subject to the 30% (or lower treaty) rate of withholding. State income tax charts You may, however, have tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the United States after December 31, 1986. State income tax charts You must fill out Form W-8BEN and give it to the withholding agent or payer before the income is paid or credited to you. State income tax charts Withholding on Tip Income Tips you receive during the year for services performed in the United States are subject to U. State income tax charts S. State income tax charts income tax. State income tax charts Include them in taxable income. State income tax charts In addition, tips received while working for one employer, amounting to $20 or more in a month, are subject to graduated withholding. State income tax charts Independent Contractors If there is no employee-employer relationship between you and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of withholding. State income tax charts However, if you are engaged in a trade or business in the United States during the tax year, your compensation for personal services as an independent contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an agreement with the Internal Revenue Service on the amount of withholding required. State income tax charts An agreement that you reach with the IRS regarding withholding from your compensation for independent personal services is effective for payments covered by the agreement after it is agreed to by all parties. State income tax charts You must agree to timely file an income tax return for the current tax year. State income tax charts Central withholding agreements. State income tax charts   If you are a nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may be able to enter into a withholding agreement with the IRS for reduced withholding provided certain requirements are met. State income tax charts Under no circumstances will such a withholding agreement reduce taxes withheld to less than the anticipated amount of income tax liability. State income tax charts   File Form 13930 and the required attachments with the IRS to request a central withholding agreement. State income tax charts Either you or your authorized representative can file the form. State income tax charts It should be sent to the IRS at least 45 days before the tour begins or the event occurs. State income tax charts Exceptions will be considered on a case by case basis. State income tax charts   For more information on the CWA program, go to www. State income tax charts irs. State income tax charts gov/Individuals/International-Taxpayers/Central-Withholding-Agreements. State income tax charts Final payment exemption. State income tax charts   Your final payment of compensation during the tax year for independent personal services may be entirely or partly exempt from withholding. State income tax charts This exemption is available only once during your tax year and applies to a maximum of $5,000 of compensation. State income tax charts To obtain this exemption, you or your agent must give the following statements and information to the Commissioner or his delegate. State income tax charts A statement by each withholding agent from whom you have received gross income effectively connected with a trade or business in the United States during the tax year, showing the amount of income paid and the tax withheld. State income tax charts Each statement must be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. State income tax charts A statement by the withholding agent from whom you expect to receive the final payment of compensation, showing the amount of the payment and the amount of tax that would be withheld if a final payment exemption were not granted. State income tax charts This statement must also be signed by the withholding agent and verified by a declaration that it is made under penalties of perjury. State income tax charts A statement by you that you do not intend to receive any other income effectively connected with a trade or business in the United States during the current tax year. State income tax charts The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code or regulations for any income effectively connected with your trade or business in the United States during the current tax year. State income tax charts The amount of your outstanding tax liabilities, if any, including interest and penalties, from the current tax year or prior tax periods. State income tax charts Any provision of an income tax treaty under which a partial or complete exemption from withholding may be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under the treaty. State income tax charts A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all the information given is true and that to your knowledge no relevant information has been omitted. State income tax charts   If satisfied with the information, the IRS will determine the amount of your tentative income tax for the tax year on gross income effectively connected with your trade or business in the United States. State income tax charts Ordinary and necessary business expenses can be taken into account if proven to the satisfaction of the Commissioner or his delegate. State income tax charts   The Commissioner or his delegate will send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that is exempt from withholding and the amount that can be paid to you because of the exemption. State income tax charts You must give two copies of the letter to the withholding agent and must also attach a copy of the letter to your income tax return for the tax year for which the exemption is effective. State income tax charts Allowance for Personal Exemption Withholding on payments for independent personal services is generally based on the amount of your compensation payment minus the value of one exemption ($3,950 for 2014). State income tax charts To determine the income for independent personal services performed in the United States to which the 30% (or lower treaty) rate will apply, you are allowed one personal exemption if you are not a U. State income tax charts S. State income tax charts national and are not a resident of Canada, Mexico, or South Korea. State income tax charts For purposes of 30% withholding, the exemption is prorated at $10. State income tax charts 82 a day in 2014 for the period that labor or personal services are performed in the United States. State income tax charts To claim an exemption from withholding on the personal exemption amount, fill out the applicable parts of Form 8233 and give it to the withholding agent. State income tax charts Example. State income tax charts Eric Johannsen, who is a resident of Country X worked under a contract with a U. State income tax charts S. State income tax charts firm (not as an employee) in the United States for 100 days during 2014 before returning to his country. State income tax charts He earned $6,000 for the services performed (not considered wages) in the United States. State income tax charts Eric is married and has three dependent children. State income tax charts His wife is not employed and has no income subject to U. State income tax charts S. State income tax charts tax. State income tax charts The amount of the personal exemption to be allowed against the income for his personal services performed within the United States in 2014 is $1,082 (100 days × $10. State income tax charts 82), and withholding at 30% is applied against the balance. State income tax charts Thus, $1,475. State income tax charts 40 in tax is withheld from Eric's earnings (30% of $4,918 ($6,000 − $1,082). State income tax charts U. State income tax charts S. State income tax charts nationals or residents of Canada, Mexico, or South Korea. State income tax charts   If you are a nonresident alien who is a resident of Canada, Mexico, or South Korea, or who is a national of the United States, you are subject to the same 30% withholding on your compensation for independent personal services performed in the United States. State income tax charts However, if you are a U. State income tax charts S. State income tax charts national or a resident of Canada or Mexico, you are allowed the same personal exemptions as U. State income tax charts S. State income tax charts citizens. State income tax charts For the 30% (or lower treaty) rate withholding, you can take $10. State income tax charts 82 per day for each allowable exemption in 2014. State income tax charts If you are a resident of South Korea, you are allowed personal exemptions for yourself and for your spouse and children who live with you in the United States at any time during the tax year. State income tax charts However, the additional exemptions for your spouse and children must be further prorated as explained in chapter 5 under Exemptions . State income tax charts Students and business apprentices from India. State income tax charts   If you are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you are allowed an exemption for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. State income tax charts S. State income tax charts taxpayer's 2014 return. State income tax charts You are also allowed an exemption for each dependent not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. State income tax charts S. State income tax charts citizens. State income tax charts For the 30% (or lower treaty rate) withholding on compensation for independent personal services performed in the United States, you are allowed $10. State income tax charts 82 per day for each allowable exemption in 2014. State income tax charts Refund of Taxes Withheld in Error Multi-level marketing. State income tax charts   If you are a distributor for a multi-level marketing company who had taxes withheld in error, file a U. State income tax charts S. State income tax charts income tax return (Form 1040NR, Form 1040NR-EZ, or Form 1120-F) or, if a tax return has already been filed, a claim for refund (Form 1040X or amended Form 1120-F) to recover the amount withheld in error. State income tax charts You must also attach to the U. State income tax charts S. State income tax charts income tax return or claim for refund supporting information that includes, but is not limited to, the following items. State income tax charts A copy of your Form W-2, Form 1042-S, or Form 1099 to prove the amount of taxes withheld. State income tax charts A statement explaining why income reported on your Form W-2, Form 1042-S, or Form 1099 is not subject to U. State income tax charts S. State income tax charts taxation. State income tax charts A statement listing all the dates you entered and left the United States during the taxable year. State income tax charts If the compensation is multi-year compensation, the statement must list all the dates you entered and left the United States during each of the taxable years to which the compensation is attributable. State income tax charts A copy of any documents or records that show the number of days you actually were present in the United States during the years listed. State income tax charts A statement providing: (a) the number of days (or unit of time less than a day, if appropriate) that personal services were performed in the United States in connection with recruiting, training, and supporting your lower-tier distributors; and (b) the total number of days (or unit of time less than a day, if appropriate) that personal services were performed globally in connection with recruiting, training, and supporting your lower-tier distributors. State income tax charts Any further relevant document or record supporting your claim that the taxes were withheld in error. State income tax charts Withholding From Other Income Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. State income tax charts It also includes 85% of social security benefits paid to nonresident aliens. State income tax charts Refund of taxes withheld in error on social security benefits paid to resident aliens. State income tax charts   Social security benefits paid to a lawful permanent resident (green card holder) are not subject to 30% withholding. State income tax charts For U. State income tax charts S. State income tax charts income tax purposes, green card holders continue to be resident aliens until their lawful permanent resident status under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. State income tax charts See Green Card Test in chapter 1. State income tax charts If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. State income tax charts SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. State income tax charts If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. State income tax charts You must also attach the following to your Form 1040 or 1040A. State income tax charts A copy of Form SSA-1042S, Social Security Benefit Statement. State income tax charts A copy of the “green card. State income tax charts ” A signed declaration that includes the following statements: The SSA should not have withheld income tax from my social security benefits because I am a U. State income tax charts S. State income tax charts lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. State income tax charts I am filing a U. State income tax charts S. State income tax charts income tax return for the tax year as a resident alien reporting all of my worldwide income. State income tax charts I have not claimed benefits for the tax year under an income tax treaty as the resident of a country other than the United States. State income tax charts Other income not subject to withholding of 30% (or lower treaty) rate. State income tax charts   The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income. State income tax charts Income (other than compensation) that is effectively connected with your U. State income tax charts S. State income tax charts trade or business. State income tax charts Income from real property that you choose to treat as effectively connected with a U. State income tax charts S. State income tax charts trade or business. State income tax charts See Income From Real Property in chapter 4 for details about this choice. State income tax charts   Special rules for withholding on partnership income, scholarships, and fellowships are explained next. State income tax charts Tax Withheld on Partnership Income If you are a foreign partner in a U. State income tax charts S. State income tax charts or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. State income tax charts You may be able to reduce your ECTI subject to withholding by certain partner-level deductions. State income tax charts Generally, you must use Form 8804-C for this purpose. State income tax charts See the Instructions for Form 8804-C for more information. State income tax charts The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (39. State income tax charts 6% for 2014). State income tax charts However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. State income tax charts Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. State income tax charts Claim the tax withheld as a credit on your 2014 Form 1040NR. State income tax charts The partnership will give you a statement on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, showing the tax withheld. State income tax charts A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. State income tax charts In this case the partnership will give you a statement on Form 1042-S, Foreign Person's U. State income tax charts S. State income tax charts Source Income Subject to Withholding. State income tax charts Withholding on Scholarships and Fellowship Grants There is no withholding on a qualified scholarship received by a candidate for a degree. State income tax charts See chapter 3. State income tax charts If you are a nonresident alien student or grantee with an “F,” “J,” “M,” or “Q” visa and you receive a U. State income tax charts S. State income tax charts source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. State income tax charts However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate. State income tax charts Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages. State income tax charts Alternate Withholding Procedure Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4 and the Personal Allowances Worksheet (attached to Form W-4). State income tax charts Use the following instructions instead of the Form W-4 instructions to complete the worksheet. State income tax charts Line A. State income tax charts   Enter the total of the following amounts on line A. State income tax charts Personal exemption. State income tax charts   Include the prorated part of your allowable personal exemption. State income tax charts Figure the amount by multiplying the number of days you expect to be in the United States in 2014 by the daily exemption amount ($10. State income tax charts 82). State income tax charts Expenses. State income tax charts   Include expenses that will be deductible on your return. State income tax charts These include away-from-home expenses (meals, lodging, and transportation), certain state and local income taxes, charitable contributions, and casualty losses, discussed earlier under Itemized Deductions in chapter 5. State income tax charts They also include business expenses, moving expenses, and the IRA deduction discussed under Deductions in chapter 5. State income tax charts Nontaxable grant or scholarship. State income tax charts   Include the part of your grant or scholarship that is not taxable under U. State income tax charts S. State income tax charts law or under a tax treaty. State income tax charts Line B. State income tax charts   Enter -0- unless the following paragraph applies to you. State income tax charts   If you are a student who qualifies under Article 21(2) of the United States-India Income Tax Treaty, and you are not claiming deductions for away-from-home expenses or other itemized deductions (discussed earlier), enter the standard deduction on line B. State income tax charts The standard deduction amount for 2013 is $6,100. State income tax charts Lines C and D. State income tax charts   Enter -0- on both lines unless the following paragraphs apply to you. State income tax charts   If you are a resident of Canada, Mexico, South Korea, or a U. State income tax charts S. State income tax charts national, an additional daily exemption amount may be allowed for your spouse and each of your dependents. State income tax charts   If you are a resident of India who is eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty, you can claim an additional daily exemption amount for your spouse only if your spouse will have no gross income for 2014 and cannot be claimed as a dependent on another U. State income tax charts S. State income tax charts taxpayer's 2014 return. State income tax charts You can also claim an additional amount for each of your dependents not admitted to the United States on “F-2,” “J-2,” or “M-2” visas if they meet the same rules that apply to U. State income tax charts S. State income tax charts citizens. State income tax charts   Enter any additional amount for your spouse on line C. State income tax charts Enter any additional amount for your dependents on line D. State income tax charts Lines E, F, and G. State income tax charts   No entries should be made on lines E, F, and G. State income tax charts Line H. State income tax charts   Add the amounts on lines A through D and enter the total on line H. State income tax charts Form W-4. State income tax charts   Complete lines 1 through 4 of Form W-4. State income tax charts Sign and date the form and give it with the Personal Allowances Worksheet to your withholding agent. State income tax charts   If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U. State income tax charts S. State income tax charts income tax return to be allowed the exemptions and deductions you claimed on that form. State income tax charts If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U. State income tax charts S. State income tax charts income tax return for the previous year. State income tax charts If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U. State income tax charts S. State income tax charts income tax return when required. State income tax charts After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. State income tax charts The gross amount of the income is reduced by the amount on line H of the worksheet and the withholding tax is figured on the remainder. State income tax charts You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less the withholding allowance amount, the tax rate, and the amount of tax withheld. State income tax charts Use this form to prepare your annual U. State income tax charts S. State income tax charts income tax return. State income tax charts Income Entitled to Tax Treaty Benefits If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, tax for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. State income tax charts Generally, you do this by filing either Form W-8BEN or Form 8233 with the withholding agent. State income tax charts File Form W-8BEN for income that is not personal services income. State income tax charts File Form 8233 for personal services income as discussed next. State income tax charts Employees and independent contractors. State income tax charts   If you perform personal services as an employee or as an independent contractor and you can claim an exemption from withholding on that personal service income because of a tax treaty, give Form 8233 to each withholding agent from whom amounts will be received. State income tax charts   Even if you submit Form 8233, the withholding agent may have to withhold tax from your income. State income tax charts This is because the factors on which the treaty exemption is based may not be determinable until after the close of the tax year. State income tax charts In this case, you must file Form 1040NR (or Form 1040NR-EZ if you qualify) to recover any overwithheld tax and to provide the IRS with proof that you are entitled to the treaty exemption. State income tax charts Students, teachers, and researchers. State income tax charts   Students, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. State income tax charts For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties. State income tax charts   If you received a scholarship or fellowship and personal services income from the same withholding agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income. State income tax charts Special events and promotions. State income tax charts   Withholding at the full 30% rate is required for payments made to a nonresident alien or foreign corporation for gate receipts (or television or other receipts) from rock music festivals, boxing promotions, and other entertainment or sporting events, unless the withholding agent has been specifically advised otherwise by letter from the IRS. State income tax charts Form 13930 is used to request a reduction in withholding. State income tax charts Withholding may be required even if the income may be exempt from taxation by provisions of a tax treaty. State income tax charts One reason for this is that the partial or complete exemption is usually based on factors that cannot be determined until after the close of the tax year. State income tax charts You will be required to pay U. State income tax charts S. State income tax charts tax, at the time of your departure from the United States, on any income for which you incorrectly claimed a treaty exemption. State income tax charts For more details on treaty provisions that apply to compensation, see Publication 901. State income tax charts Tax Withheld on Real Property Sales If you are a nonresident alien and you dispose of a U. State income tax charts S. State income tax charts real property interest, the transferee (buyer) of the property generally must withhold a tax equal to 10% of the amount realized on the disposition. State income tax charts A distribution by a qualified investment entity to a nonresident alien shareholder that is treated as gain from the sale or exchange of a U. State income tax charts S. State income tax charts real property interest by the shareholder is subject to withholding at 35%. State income tax charts Withholding is also required on certain distributions and other transactions by domestic or foreign corporations, partnerships, trusts, and estates. State income tax charts These rules are covered in Publication 515. State income tax charts For information on the tax treatment of dispositions of U. State income tax charts S. State income tax charts real property interests, see Real Property Gain or Loss in chapter 4. State income tax charts If you are a partner in a domestic partnership, and the partnership disposes of a U. State income tax charts S. State income tax charts real property interest at a gain, the partnership will withhold tax on the amount of gain allocable to its foreign partners. State income tax charts Your share of the income and tax withheld will be reported to you on Form 8805, Foreign Partner's Information Statement of Section 1446 Withholding Tax, or Form 1042-S, Foreign Person's U. State income tax charts S. State income tax charts Source Income Subject to Withholding (in the case of a publicly traded partnership). State income tax charts Withholding is not required in the following situations. State income tax charts The property is acquired by the buyer for use as a residence and the amount realized (sales price) is not more than $300,000. State income tax charts The property disposed of is an interest in a domestic corporation if any class of stock of the corporation is regularly traded on an established securities market. State income tax charts However, this exception does not apply to certain dispositions of substantial amounts of non-publicly traded interests in publicly traded corporations. State income tax charts The property disposed of is an interest in a U. State income tax charts S. State income tax charts corporation that is not regularly traded on an established market and you (the seller) give the buyer a copy of a statement issued by the corporation certifying that the interest is not a U. State income tax charts S. State income tax charts real property interest. State income tax charts You (the seller) give the buyer a certification stating, under penalties of perjury, that you are not a foreign person, and containing your name, U. State income tax charts S. State income tax charts taxpayer identification number, and home address. State income tax charts You can give the certification to a qualified substitute. State income tax charts The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification is in the possession of the qualified substitute. State income tax charts For this purpose, a qualified substitute is (a) the person (including any attorney or title company) responsible for closing the transaction, other than your agent, and (b) the buyer's agent. State income tax charts The buyer receives a withholding certificate from the Internal Revenue Service. State income tax charts You give the buyer written notice that you are not required to recognize any gain or loss on the transfer because of a nonrecognition provision in the Internal Revenue Code or a provision in a U. State income tax charts S. State income tax charts tax treaty. State income tax charts The buyer must file a copy of the notice with the Ogden Service Center, P. State income tax charts O. State income tax charts Box 409101, Ogden, UT 84409. State income tax charts You must verify the notice as true and sign it under penalties of perjury. State income tax charts The notice must contain the following information. State income tax charts A statement that the notice is a notice of nonrecognition under regulation section 1. State income tax charts 1445-2(d)(2). State income tax charts Your name, taxpayer identification number, and home address. State income tax charts A statement that you are not required to recognize any gain or loss on the transfer. State income tax charts A brief description of the transfer. State income tax charts A brief summary of the law and facts supporting your claim that recognition of gain or loss is not required. State income tax charts You may not give the buyer a written notice for any of the following transfers: the sale of your main home on which you exclude gain, a like-kind exchange that does not qualify for nonrecognition treatment in its entirety, or a deferred like-kind exchange that has not been completed at the time the buyer must file Form 8288. State income tax charts Instead, a withholding certificate (described next) must be obtained. State income tax charts The amount you realize on the transfer of a U. State income tax charts S. State income tax charts real property interest is zero. State income tax charts The property is acquired by the United States, a U. State income tax charts S. State income tax charts state or possession, a political subdivision, or the District of Columbia. State income tax charts The distribution is from a domestically controlled qualified investment entity (QIE) and is treated as a distribution of a U. State income tax charts S. State income tax charts real property interest only because an interest in the entity was disposed of in an applicable wash sale transaction. State income tax charts For the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. State income tax charts See Wash sale under Real Property Gain or Loss in chapter 4. State income tax charts The certifications in (3) and (4) must be disregarded by the buyer if the buyer or qualified substitute has actual knowledge, or receives notice from a seller's or buyer's agent (or substitute), that they are false. State income tax charts This also applies to the qualified substitute's statement under (4). State income tax charts Withholding certificates. State income tax charts   The tax required to be withheld on a disposition can be reduced or eliminated under a withholding certificate issued by the IRS. State income tax charts Either you or the buyer can request a withholding certificate. State income tax charts   A withholding certificate can be issued due to any of the following. State income tax charts The IRS determines that reduced withholding is appropriate because either: The amount required to be withheld would be more than your maximum tax liability, or Withholding of the reduced amount would not jeopardize collection of the tax. State income tax charts All of your realized gain is exempt from U. State income tax charts S. State income tax charts tax. State income tax charts You or the buyer enters into an agreement for the payment of tax providing security for the tax liability. State income tax charts   Get Publication 515 and Form 8288-B for information on procedures to request a withholding certificate. State income tax charts Credit for tax withheld. State income tax charts   The buyer must report and pay over the withheld tax within 20 days after the transfer using Form 8288, U. State income tax charts S. State income tax charts Withholding Tax Return for Dispositions by Foreign Persons of U. State income tax charts S. State income tax charts Real Property Interests. State income tax charts This form is filed with the IRS with copies A and B of Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U. State income tax charts S. State income tax charts Real Property Interests. State income tax charts Copy B of this statement will be stamped received by the IRS and returned to you (the seller) if the statement is complete and includes your taxpayer identification number (TIN). State income tax charts You must file Copy B with your tax return to take credit for the tax withheld. State income tax charts   A stamped copy of Form 8288-A will not be provided to you if your TIN is not included on that form. State income tax charts The IRS will send you a letter requesting the TIN and providing instructions for how to get a TIN. State income tax charts When you provide the IRS with a TIN, the IRS will provide you with a stamped Copy B of Form 8288-A. State income tax charts Social Security and Medicare Taxes If you work as an employee in the United States, you must pay social security and Medicare taxes in most cases. State income tax charts Your payments of these taxes contribute to your coverage under the U. State income tax charts S. State income tax charts social security system. State income tax charts Social security coverage provides retirement benefits, survivors and disability benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements. State income tax charts In most cases, the first $113,700 of taxable wages received in 2013 for services performed in the United States is subject to social security tax. State income tax charts All taxable wages are subject to Medicare tax. State income tax charts Your employer deducts these taxes from each wage payment. State income tax charts Your employer must deduct these taxes even if you do not expect to qualify for social security or Medicare benefits. State income tax charts You can claim a credit for excess social security tax on your income tax return if you have more than one employer and the amount deducted from your combined wages for 2013 is more than $7,049. State income tax charts 40. State income tax charts Use the appropriate worksheet in chapter 3 of Publication 505, Tax Withholding and Estimated Tax, to figure your credit. State income tax charts If any one employer deducted more than $7,049. State income tax charts 40, you cannot claim a credit for that amount. State income tax charts Ask your employer to refund the excess. State income tax charts If your employer does not refund the excess, you can file a claim for refund using Form 843. State income tax charts In general, U. State income tax charts S. State income tax charts social security and Medicare taxes apply to payments of wages for services performed as an employee in the United States, regardless of the citizenship or residence of either the employee or the employer. State income tax charts In limited situations, these taxes apply to wages for services performed outside the United States. State income tax charts Your employer should be able to tell you if social security and Medicare taxes apply to your wages. State income tax charts You cannot make voluntary payments if no taxes are due. State income tax charts Additional Medicare Tax. State income tax charts   Beginning in 2013, in addition to the Medicare tax, a 0. State income tax charts 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that are more than: $250,000 if married filing jointly, $125,000 if married filing separately, or $200,000 for any other filing status. State income tax charts   There are no special rules for nonresident aliens for purposes of Additional Medicare Tax. State income tax charts Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. State income tax charts   Your employer is responsible for withholding the 0. State income tax charts 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in the calendar year. State income tax charts If you intend to file a joint return and you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be more than $250,000, you may want to request additional withholding on Form W-4 and/or make estimated tax payments. State income tax charts   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). State income tax charts    See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. State income tax charts For more information on Additional Medicare Tax, go to IRS. State income tax charts gov and enter “Additional Medicare Tax” in the search box. State income tax charts   Self-employed individuals may also be required to pay Additional Medicare Tax. State income tax charts See Self-Employment Tax , later. State income tax charts Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. State income tax charts This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. State income tax charts These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. State income tax charts Social security and Medicare taxes will be withheld from your pay for these services if you are considered a resident alien as discussed in chapter 1, even though your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same. State income tax charts Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” “M-2,” and “Q-3” are covered under social security. State income tax charts Nonresident Alien Students If you are a nonresident alien temporarily admitted to the United States as a student, you generally are not permitted to work for a wage or salary or to engage in business while you are in the United States. State income tax charts In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” status is granted permission to work. State income tax charts Social security and Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien. State income tax charts Any student who is enrolled and regularly attending classes at a school may be exempt from social security and Medicare taxes on pay for services performed for that school. State income tax charts The U. State income tax charts S. State income tax charts Citizenship and Immigration Services (USCIS) permits on-campus work for students in “F-1” status if it does not displace a U. State income tax charts S. State income tax charts resident. State income tax charts On-campus work means work performed on the school's premises. State income tax charts On-campus work includes work performed at an off-campus location that is educationally affiliated with the school. State income tax charts On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the academic program of a student taking a full course of study and is permitted by the USCIS. State income tax charts Social security and Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien. State income tax charts If services performed by a nonresident alien student are not considered as performed to carry out the purpose for which the student was admitted to the United States, social security and Medicare taxes will be withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. State income tax charts Exchange Visitors Exchange visitors are temporarily admitted to the United States under section 101(a)(15)(J) of the Immigration and Nationality Act. State income tax charts Social security and Medicare taxes are not withheld on pay for services of an exchange visitor who has been given permission to work and who possesses or obtains a letter of authorization from the sponsor unless the exchange visitor is considered a resident alien. State income tax charts If services performed by an exchange visitor are not considered as performed to carry out the purpose for which the visitor was admitted to the United States, social security and Medicare taxes are withheld from pay for the services unless the pay is exempt under the Internal Revenue Code. State income tax charts Nonresident aliens temporarily admitted to the United States as participants in international cultural exchange programs under section 101(a)(15)(Q) of the Immigration and Nationality Act may be exempt from social security and Medicare taxes. State income tax charts The employer must be the petitioner through whom the alien obtained the “Q” visa. State income tax charts Social security and Medicare taxes are not withheld from pay for this work unless the alien is considered a resident alien. State income tax charts Refund of Taxes Withheld in Error If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. State income tax charts If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. State income tax charts Attach the following items to Form 843. State income tax charts A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld. State income tax charts A copy of your visa. State income tax charts Form I-94 (or other documentation showing your dates of arrival or departure). State income tax charts If you have an F-1 visa, documentation showing permission to work in the U. State income tax charts S. State income tax charts If you have a J-1 visa, documentation showing permission to work in the U. State income tax charts S. State income tax charts If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U. State income tax charts S. State income tax charts A statement from your employer indicating the amount of the reimbursement your employer provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. State income tax charts If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund. State income tax charts If you were exempt from social security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt. State income tax charts File Form 843 (with attachments) with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0038. State income tax charts Do not use Form 843 to request a refund of Additional Medicare Tax. State income tax charts If Additional Medicare Tax was withheld from your pay in error, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959 with Form 1040 or 1040NR. State income tax charts If Additional Medicare Tax was withheld in error in a prior year for which you already filed Form 1040 or 1040NR, you must file Form 1040X, Amended U. State income tax charts S. State income tax charts Individual Income Tax Return, for the prior year in which the wages or compensation were originally received to recover the Additional Medicare Tax withheld in error. State income tax charts See the Instructions for Form 1040X. State income tax charts Agricultural Workers Agricultural workers temporarily admitted into the United States on H-2A visas are exempt from social security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. State income tax charts You can find more information about not having tax withheld at www. State income tax charts irs. State income tax charts gov/Individuals/International-Taxpayers/Foreign-Agricultural-Workers. State income tax charts Self-Employment Tax Self-employment tax is the social security and Medicare taxes for individuals who are self-employed. State income tax charts Nonresident aliens are not subject to self-employment tax unless an international social security agreement in effect determines that they are covered under the U. State income tax charts S. State income tax charts social security system. State income tax charts Residents of the U. State income tax charts S. State income tax charts Virgin Islands, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, or American Samoa are considered U. State income tax charts S. State income tax charts residents for this purpose and are subject to the self-employment tax. State income tax charts Resident aliens must pay self-employment tax under the same rules that apply to U. State income tax charts S. State income tax charts citizens. State income tax charts However, a resident alien employed by an international organization, a foreign government, or a wholly-owned instrumentality of a foreign government is not subject to the self-employment tax on income earned in the United States. State income tax charts Self-employment income you receive while you are a resident alien is subject to self-employment tax even if it was paid for services you performed as a nonresident alien. State income tax charts Example. State income tax charts Bill Jones is an author engaged in the business of writing books. State income tax charts Bill had several books published in a foreign country while he was a citizen and resident of that country. State income tax charts During 2013, Bill entered the United States as a resident alien. State income tax charts After becoming a U. State income tax charts S. State income tax charts resident, he continued to receive royalties from his foreign publisher. State income tax charts Bill reports his income and expenses on the cash basis (he reports income on his tax return when received and deducts expenses when paid). State income tax charts Bill's 2013 self-employment income includes the royalties received after he became a U. State income tax charts S. State income tax charts resident even though the books were published while he was a nonresident alien. State income tax charts This royalty income is subject to self-employment tax. State income tax charts Reporting self-employment tax. State income tax charts   Use Schedule SE (Form 1040) to report and figure your self-employment tax. State income tax charts Then enter the tax on Form 1040, line 56, or Form 1040NR, line 54. State income tax charts Attach Schedule SE to Form 1040 or Form 1040NR. State income tax charts Additional Medicare Tax. State income tax charts   Self-employed individuals must pay a 0. State income tax charts 9% Additional Medicare Tax on self-employment income that exceeds one of the following threshold amounts (based on your filing status): Married filing jointly — $250,000; Married filing separately — $125,000; Single, Head of household, or Qualifying widow(er) — $200,000. State income tax charts   If you have both wages and self-employment income, the threshold amount for applying the Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of wages subject to Additional Medicare Tax. State income tax charts A self-employment loss should not be considered for purposes of this tax   If you file Form 1040NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (Box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (Box 1, 2, or 6 on page 1 of Form 1040NR). State income tax charts   See Form 8959, Additional Medicare Tax, and the Instructions for Form 8959 to determine whether you are required to pay Additional Medicare Tax. State income tax charts For more information on Additional Medicare Tax, go to IRS. State income tax charts gov and enter “Additional Medicare Tax” in the search box. State income tax charts Deduction for employer-equivalent portion of self-employment tax. State income tax charts   If you must pay self-employment tax, you can deduct a portion of the self-employment tax paid in figuring your adjusted gross income. State income tax charts This deduction is figured on Schedule SE (Form 1040). State income tax charts Note. State income tax charts No portion of the Additional Medicare Tax is deductible for self-employment tax. State income tax charts More information. State income tax charts   Get Publication 334, Tax Guide for Small Business, for more information about self-employment tax. State income tax charts International Social Security Agreements The United States has entered into social security agreements with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of their working careers in one of the countries. State income tax charts These agreements are commonly referred to as totalization agreements. State income tax charts Under these agreements, dual coverage and dual contributions (taxes) for the same work are eliminated. State income tax charts The agreements generally make sure that social security taxes (including self-employment tax) are paid only to one country. State income tax charts Agreements are in effect with the following countries. State income tax charts Australia. State income tax charts Austria. State income tax charts Belgium. State income tax charts Canada. State income tax charts Chile. State income tax charts Czech Republic. State income tax charts Denmark. State income tax charts Finland. State income tax charts France. State income tax charts Germany. State income tax charts Greece. State income tax charts Ireland. State income tax charts Italy. State income tax charts Japan. State income tax charts Korea, South. State income tax charts Luxembourg. State income tax charts The Netherlands. State income tax charts Norway. State income tax charts Poland. State income tax charts Portugal. State income tax charts Spain. State income tax charts Sweden. State income tax charts Switzerland. State income tax charts The United Kingdom. State income tax charts Agreements with other countries are expected to enter into force in the future. State income tax charts Employees. State income tax charts   Generally, under these agreements, you are subject to social security taxes only in the country where you are working. State income tax charts However, if you are temporarily sent to work for the same employer in the United States and your pay would normally be subject to social security taxes in both countries, most agreements provide that you remain covered only by the social security system of the country from which you were sent. State income tax charts You can get more information on any agreement by contacting the U. State income tax charts S. State income tax charts Social Security Administration at the address given later. State income tax charts If you have access to the Internet, you can get more information at www. State income tax charts socialsecurity. State income tax charts gov/international. State income tax charts   To establish that your pay is subject only to foreign social security taxes and is exempt from U. State income tax charts S. State income tax charts social security taxes (including the Medicare tax) under an agreement, you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. State income tax charts This will usually be the same agency to which you or your employer pays your foreign social security taxes. State income tax charts The foreign agency will be able to tell you what information is needed for them to issue the certificate. State income tax charts Your employer should keep a copy of the certificate because it may be needed to show why you are exempt from U. State income tax charts S. State income tax charts social security taxes. State income tax charts Only wages paid on or after the effective date of the agreement can be exempt from U. State income tax charts S. State income tax charts social security taxes. State income tax charts    Some of the countries with which the United States has agreements will not issue certificates of coverage. State income tax charts In this case, either you or your employer should request a statement that your wages are not covered by the U. State income tax charts S. State income tax charts social security system. State income tax charts Request the statement from the following address. State income tax charts U. State income tax charts S. State income tax charts Social Security Administration Office of International Programs P. State income tax charts O. State income tax charts Box 17741 Baltimore, MD 21235-7741 Self-employed individuals. State income tax charts   Under most agreements, self-employed individuals are covered by the social security system of the country where they reside. State income tax charts However, under some agreements, you may be exempt from U. State income tax charts S. State income tax charts self-employment tax if you temporarily transfer your business activity to or from the United States. State income tax charts   If you believe that your self-employment income is subject only to U. State income tax charts S. State income tax charts self-employment tax and is exempt from foreign social security taxes, request a certificate of coverage from the U. State income tax charts S. State income tax charts Social Security Administration at the address given earlier. State income tax charts This certificate will establish your exemption from foreign social security taxes. State income tax charts   To establish that your self-employment income is subject only to foreign social security taxes and is exempt from U. State income tax charts S. State income tax charts self-employment tax, request a certificate of coverage from the appropriate agency of the foreign country. State income tax charts If the foreign country will not issue the certificate, you should request a statement that your income is not covered by the U. State income tax charts S. State income tax charts social security system. State income tax charts Request it from the U. State income tax charts S. State income tax charts Social Security Administration at the address given earlier. State income tax charts Attach a photocopy of either statement to Form 1040 each year you are exempt. State income tax charts Also print “Exempt, see attached statement” on the line for self-employment tax. State income tax charts Estimated Tax Form 1040-ES (NR) You may have income from which no U. State income tax charts S. State income tax charts income tax is withheld. State income tax charts Or the amount of tax withheld may be less than the income tax you estimate you will owe at the end of the year. State income tax charts If so, you may have to pay estimated tax. State income tax charts Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax and you expect your withholding and certain refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 income tax return, or 100% of the tax shown on your 2013 income tax return (if your 2013 return covered all 12 months of the year). State income tax charts If your adjusted gross income for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. State income tax charts Item (2) does not apply if you did not file a 2013 return. State income tax charts A nonresident alien should use Form 1040-ES (NR) to figure and pay estimated tax. State income tax charts If you pay by check, make it payable to the "United States Treasury. State income tax charts " How to estimate your tax for 2014. State income tax charts   If you filed a 2013 return on Form 1040NR or Form 1040NR-EZ and expect your income, number of exemptions, and total deductions for 2014 to be nearly the same, you should use your 2013 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. State income tax charts If you did not file a return for 2013, or if your income, exemptions, deductions, or credits will be different for 2014, you must estimate these amounts. State income tax charts Figure your estimated tax liability using the Tax Rate Schedule in the 2014 Form 1040-ES (NR) instructions for your filing status. State income tax charts Note. State income tax charts If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 1040-ES (PR). State income tax charts When to pay estimated tax. State income tax charts   Make your first estimated tax payment by the due date for filing the previous year's Form 1040NR or Form 1040NR-EZ. State income tax charts If you have wages subject to the same withholding rules that apply to U. State income tax charts S. State income tax charts citizens, you must file Form 1040NR or Form 1040NR-EZ and make your first estimated tax payment by April 15, 2014. State income tax charts If you do not have wages subject to withholding, file your income tax return and make your first estimated tax payment by June 16, 2014. State income tax charts   If your first estimated tax payment is due April 15, 2014, you can pay your estimated tax in full at that time or in four equal installments by the dates shown next. State income tax charts 1st installment April 15, 2014 2nd installment June 16, 2014 3rd installment Sept. State income tax charts 15, 2014 4th installment Jan. State income tax charts 15, 2015 If your first payment is not due until June 16, 2014, you can pay your estimated tax in full at that time or: ½ of your estimated tax by June 16, 2014, 1/4 of the tax by September 15, 2014, and 1/4 by January 15, 2015. State income tax charts    You do not have to make the payment due January 15, 2015, if you file your 2014 Form 1040NR or 1040NR-EZ by February 2, 2015, and pay the entire balance due with your return. State income tax charts Fiscal year. State income tax charts   If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 9th months of your fiscal year, and the 1st month of the following fiscal year. State income tax charts If any date falls on a Saturday, Sunday, or legal holiday, use the next day that is not a Saturday, Sunday, or legal holiday. State income tax charts Changes in income, deductions, or exemptions. State income tax charts   Even if you are not required to make an estimated tax payment in April or June, your circumstances may change so that you will have to make estimated tax payments later. State income tax charts This can happen if you receive additional income or if any of your deductions are reduced or eliminated. State income tax charts If so, see the instructions for Form 1040-ES (NR) and Publication 505 for information on figuring your estimated tax. State income tax charts Amended estimated tax. State income tax charts   If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in your income or exemptions, you should adjust your remaining estimated tax payments. State income tax charts To do this, see the instructions for Form 1040-ES (NR) and Publication 505. State income tax charts Penalty for failure to pay estimated income tax. State income tax charts   You will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. State income tax charts These situations are explained on Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. State income tax charts Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Tax Relief for Victims of Severe Storms, Tornadoes, Flooding, Mudslides and Landslides in West Virginia

Updated 4/19/2012 to include Harrison, Preston and Wayne counties

WVA-2012-1, March 19, 2012

CHARLESTON — Victims of the severe storms, tornadoes, flooding, mudslides and landslides that began on Feb. 29, 2012 in parts of West Virginia may qualify for tax relief from the Internal Revenue Service.

The President has declared Harrison, Lincoln, Marion, Preston, Taylor and Wayne counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Feb. 29, and on or before May 31, have been postponed to May 31, 2012. This includes the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to an individual retirement account (IRA).  

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Feb. 29, and on or before March 15, as long as the deposits are made by March 15, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until May 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Feb. 29 and on or before May 31.

The IRS also gives affected taxpayers until May 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Feb. 29 and on or before May 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Feb. 29 and on or before March 15 provided the taxpayer makes these deposits by March 15.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “West Virginia/Severe Storms, Tornadoes, Flooding, Mudslides, and Landslides” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-TAX-FORM (800-829-3676). The IRS toll-free number for general tax questions is 800-829-1040.

Related Information

Page Last Reviewed or Updated: 06-Mar-2014

The State Income Tax Charts

State income tax charts 1. State income tax charts   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. State income tax charts Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. State income tax charts Reseller statement. State income tax charts Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. State income tax charts Deep-draft ocean-going vessels. State income tax charts Passenger vessels. State income tax charts Ocean-going barges. State income tax charts State or local governments. State income tax charts Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. State income tax charts Gasoline, including aviation gasoline and gasoline blendstocks. State income tax charts Diesel fuel, including dyed diesel fuel. State income tax charts Diesel-water fuel emulsion. State income tax charts Kerosene, including dyed kerosene and kerosene used in aviation. State income tax charts Other Fuels (including alternative fuels). State income tax charts Compressed natural gas (CNG). State income tax charts Fuels used in commercial transportation on inland waterways. State income tax charts Any liquid used in a fractional ownership program aircraft as fuel. State income tax charts The following terms are used throughout the discussion of fuel taxes. State income tax charts Other terms are defined in the discussion of the specific fuels to which they pertain. State income tax charts Agri-biodiesel. State income tax charts   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. State income tax charts Approved terminal or refinery. State income tax charts   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. State income tax charts Biodiesel. State income tax charts   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. State income tax charts Blended taxable fuel. State income tax charts   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. State income tax charts This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. State income tax charts Blender. State income tax charts   This is the person that produces blended taxable fuel. State income tax charts Bulk transfer. State income tax charts   This is the transfer of taxable fuel by pipeline or vessel. State income tax charts Bulk transfer/terminal system. State income tax charts   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. State income tax charts Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. State income tax charts Cellulosic biofuel. State income tax charts   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. State income tax charts Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). State income tax charts For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. State income tax charts Also see Second generation biofuel below. State income tax charts Diesel-water fuel emulsion. State income tax charts   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. State income tax charts The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. State income tax charts Dry lease aircraft exchange. State income tax charts   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. State income tax charts Enterer. State income tax charts   This is the importer of record (under customs law) for the taxable fuel. State income tax charts However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. State income tax charts If there is no importer of record, the owner at the time of entry into the United States is the enterer. State income tax charts Entry. State income tax charts   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. State income tax charts This does not apply to fuel brought into Puerto Rico (which is part of the U. State income tax charts S. State income tax charts customs territory), but does apply to fuel brought into the United States from Puerto Rico. State income tax charts Fractional ownership aircraft program and fractional program aircraft. State income tax charts   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. State income tax charts Measurement of taxable fuel. State income tax charts   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. State income tax charts Other fuels. State income tax charts   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. State income tax charts Pipeline operator. State income tax charts   This is the person that operates a pipeline within the bulk transfer/terminal system. State income tax charts Position holder. State income tax charts   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. State income tax charts You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. State income tax charts A terminal operator that owns taxable fuel in its terminal is a position holder. State income tax charts Rack. State income tax charts   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. State income tax charts Refiner. State income tax charts   This is any person that owns, operates, or otherwise controls a refinery. State income tax charts Refinery. State income tax charts   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. State income tax charts However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. State income tax charts For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. State income tax charts Registrant. State income tax charts   This is a taxable fuel registrant (see Registration Requirements, later). State income tax charts Removal. State income tax charts   This is any physical transfer of taxable fuel. State income tax charts It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. State income tax charts However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. State income tax charts Renewable diesel. State income tax charts   See Renewable Diesel Credits in chapter 2. State income tax charts Sale. State income tax charts   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. State income tax charts For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. State income tax charts Second generation biofuel. State income tax charts   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. State income tax charts S. State income tax charts C. State income tax charts 7545). State income tax charts It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. State income tax charts It is not alcohol of less than 150 proof (disregard any added denaturants). State income tax charts See Form 6478 for more information. State income tax charts State. State income tax charts   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. State income tax charts An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. State income tax charts Taxable fuel. State income tax charts   This means gasoline, diesel fuel, and kerosene. State income tax charts Terminal. State income tax charts   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. State income tax charts It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. State income tax charts A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. State income tax charts Terminal operator. State income tax charts   This is any person that owns, operates, or otherwise controls a terminal. State income tax charts Throughputter. State income tax charts   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). State income tax charts Vessel operator. State income tax charts   This is the person that operates a vessel within the bulk transfer/terminal system. State income tax charts However, vessel does not include a deep draft ocean-going vessel. State income tax charts Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. State income tax charts A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. State income tax charts For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. State income tax charts The returns are due the last day of the month following the month in which the transaction occurs. State income tax charts Generally, these returns can be filed on paper or electronically. State income tax charts For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. State income tax charts Publication 3536 is only available on the IRS website. State income tax charts Form 720-TO. State income tax charts   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. State income tax charts Each terminal operator must file a separate form for each approved terminal. State income tax charts Form 720-CS. State income tax charts   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. State income tax charts Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. State income tax charts See Form 637 for other persons who must register and for more information about registration. State income tax charts Persons that are required to be registered. State income tax charts   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. State income tax charts Persons that may register. State income tax charts   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. State income tax charts Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. State income tax charts However, they must be registered to file claims for certain sales and uses of fuel. State income tax charts See Form 637 for more information. State income tax charts Taxable fuel registrant. State income tax charts   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. State income tax charts The term registrant as used in the discussions of these fuels means a taxable fuel registrant. State income tax charts Additional information. State income tax charts   See the Form 637 instructions for the information you must submit when you apply for registration. State income tax charts Failure to register. State income tax charts   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. State income tax charts Gasoline and Aviation Gasoline Gasoline. State income tax charts   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. State income tax charts Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. State income tax charts Gasoline also includes gasoline blendstocks, discussed later. State income tax charts Aviation gasoline. State income tax charts   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. State income tax charts Taxable Events The tax on gasoline is $. State income tax charts 184 per gallon. State income tax charts The tax on aviation gasoline is $. State income tax charts 194 per gallon. State income tax charts When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. State income tax charts 141 per gallon. State income tax charts See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. State income tax charts Tax is imposed on the removal, entry, or sale of gasoline. State income tax charts Each of these events is discussed later. State income tax charts Also, see the special rules that apply to gasoline blendstocks, later. State income tax charts If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. State income tax charts See Refunds of Second Tax in chapter 2. State income tax charts Removal from terminal. State income tax charts   All removals of gasoline at a terminal rack are taxable. State income tax charts The position holder for that gasoline is liable for the tax. State income tax charts Two-party exchanges. State income tax charts   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. State income tax charts A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. State income tax charts The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. State income tax charts The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. State income tax charts The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. State income tax charts The transaction is subject to a written contract. State income tax charts Terminal operator's liability. State income tax charts   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. State income tax charts   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. State income tax charts The terminal operator is a registrant. State income tax charts The terminal operator has an unexpired notification certificate (discussed later) from the position holder. State income tax charts The terminal operator has no reason to believe any information on the certificate is false. State income tax charts Removal from refinery. State income tax charts   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. State income tax charts It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. State income tax charts It is made at the refinery rack. State income tax charts The refiner is liable for the tax. State income tax charts Exception. State income tax charts   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. State income tax charts The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. State income tax charts The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. State income tax charts The removal from the refinery is by railcar. State income tax charts The same person operates the refinery and the facility at which the gasoline is received. State income tax charts Entry into the United States. State income tax charts   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. State income tax charts It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. State income tax charts It is not made by bulk transfer. State income tax charts The enterer is liable for the tax. State income tax charts Importer of record's liability. State income tax charts   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. State income tax charts   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. State income tax charts The importer of record has an unexpired notification certificate (discussed later) from the enterer. State income tax charts The importer of record has no reason to believe any information in the certificate is false. State income tax charts Customs bond. State income tax charts   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. State income tax charts Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. State income tax charts   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. State income tax charts The position holder is liable for the tax. State income tax charts The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. State income tax charts However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. State income tax charts Bulk transfers not received at approved terminal or refinery. State income tax charts   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. State income tax charts No tax was previously imposed (as discussed earlier) on any of the following events. State income tax charts The removal from the refinery. State income tax charts The entry into the United States. State income tax charts The removal from a terminal by an unregistered position holder. State income tax charts Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). State income tax charts   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. State income tax charts However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. State income tax charts The owner is a registrant. State income tax charts The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. State income tax charts The owner has no reason to believe any information on the certificate is false. State income tax charts The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. State income tax charts The operator is jointly and severally liable if the owner does not meet these conditions. State income tax charts Sales to unregistered person. State income tax charts   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. State income tax charts   The seller is liable for the tax. State income tax charts However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. State income tax charts   The seller is a registrant. State income tax charts The seller has an unexpired notification certificate (discussed later) from the buyer. State income tax charts The seller has no reason to believe any information on the certificate is false. State income tax charts The buyer of the gasoline is liable for the tax if the seller meets these conditions. State income tax charts The buyer is jointly and severally liable if the seller does not meet these conditions. State income tax charts Exception. State income tax charts   The tax does not apply to a sale if all of the following apply. State income tax charts The buyer's principal place of business is not in the United States. State income tax charts The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. State income tax charts The seller is a registrant and the exporter of record. State income tax charts The fuel was exported. State income tax charts Removal or sale of blended gasoline. State income tax charts   The removal or sale of blended gasoline by the blender is taxable. State income tax charts See Blended taxable fuel under Definitions, earlier. State income tax charts   The blender is liable for the tax. State income tax charts The tax is figured on the number of gallons not previously subject to the tax on gasoline. State income tax charts   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. State income tax charts See Form 720 to report this tax. State income tax charts You also must be registered with the IRS as a blender. State income tax charts See Form 637. State income tax charts   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. State income tax charts Notification certificate. State income tax charts   The notification certificate is used to notify a person of the registration status of the registrant. State income tax charts A copy of the registrant's letter of registration cannot be used as a notification certificate. State income tax charts A model notification certificate is shown in the Appendix as Model Certificate C. State income tax charts A notification certificate must contain all information necessary to complete the model. State income tax charts   The certificate may be included as part of any business records normally used for a sale. State income tax charts A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. State income tax charts The registrant must provide a new certificate if any information on a certificate has changed. State income tax charts Additional persons liable. State income tax charts   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. State income tax charts Gasoline Blendstocks Gasoline blendstocks may be subject to $. State income tax charts 001 per gallon LUST tax as discussed below. State income tax charts Gasoline includes gasoline blendstocks. State income tax charts The previous discussions apply to these blendstocks. State income tax charts However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. State income tax charts 001 per gallon or are not subject to the excise tax. State income tax charts Blendstocks. State income tax charts   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. State income tax charts   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. State income tax charts Not used to produce finished gasoline. State income tax charts   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. State income tax charts Removals and entries not connected to sale. State income tax charts   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. State income tax charts Removals and entries connected to sale. State income tax charts   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. State income tax charts The person has an unexpired certificate (discussed later) from the buyer. State income tax charts The person has no reason to believe any information in the certificate is false. State income tax charts Sales after removal or entry. State income tax charts   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. State income tax charts The seller is liable for the tax. State income tax charts However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. State income tax charts The seller has an unexpired certificate (discussed next) from the buyer. State income tax charts The seller has no reason to believe any information in the certificate is false. State income tax charts Certificate of buyer. State income tax charts   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. State income tax charts The certificate may be included as part of any business records normally used for a sale. State income tax charts A model certificate is shown in the Appendix as Model Certificate D. State income tax charts The certificate must contain all information necessary to complete the model. State income tax charts   A certificate expires on the earliest of the following dates. State income tax charts The date 1 year after the effective date (not earlier than the date signed) of the certificate. State income tax charts The date a new certificate is provided to the seller. State income tax charts The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. State income tax charts The buyer must provide a new certificate if any information on a certificate has changed. State income tax charts   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. State income tax charts Received at approved terminal or refinery. State income tax charts   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. State income tax charts The person is a registrant. State income tax charts The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. State income tax charts The person has no reason to believe any information on the certificate is false. State income tax charts Bulk transfers to registered industrial user. State income tax charts   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. State income tax charts An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. State income tax charts Credits or Refunds. State income tax charts   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. State income tax charts For more information, see chapter 2. State income tax charts Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). State income tax charts However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. State income tax charts Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. State income tax charts A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. State income tax charts A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. State income tax charts However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. State income tax charts Diesel fuel does not include gasoline, kerosene, excluded liquid, No. State income tax charts 5 and No. State income tax charts 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. State income tax charts An excluded liquid is either of the following. State income tax charts A liquid that contains less than 4% normal paraffins. State income tax charts A liquid with all the following properties. State income tax charts Distillation range of 125 degrees Fahrenheit or less. State income tax charts Sulfur content of 10 ppm or less. State income tax charts Minimum color of +27 Saybolt. State income tax charts Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. State income tax charts Kerosene. State income tax charts   This means any of the following liquids. State income tax charts One of the two grades of kerosene (No. State income tax charts 1-K and No. State income tax charts 2-K) covered by ASTM specification D3699. State income tax charts Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). State income tax charts See Kerosene for Use in Aviation, later. State income tax charts   However, kerosene does not include excluded liquid, discussed earlier. State income tax charts   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. State income tax charts Diesel-powered highway vehicle. State income tax charts   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. State income tax charts Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. State income tax charts For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. State income tax charts 2) in chapter 2. State income tax charts Diesel-powered train. State income tax charts   This is any diesel-powered equipment or machinery that rides on rails. State income tax charts The term includes a locomotive, work train, switching engine, and track maintenance machine. State income tax charts Taxable Events The tax on diesel fuel and kerosene is $. State income tax charts 244 per gallon. State income tax charts It is imposed on the removal, entry, or sale of diesel fuel and kerosene. State income tax charts Each of these events is discussed later. State income tax charts Only the $. State income tax charts 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. State income tax charts If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. State income tax charts See Refunds of Second Tax in chapter 2. State income tax charts Use in certain intercity and local buses. State income tax charts   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. State income tax charts A claim for $. State income tax charts 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. State income tax charts An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. State income tax charts The bus must be engaged in one of the following activities. State income tax charts Scheduled transportation along regular routes regardless of the size of the bus. State income tax charts Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). State income tax charts A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. State income tax charts Removal from terminal. State income tax charts   All removals of diesel fuel and kerosene at a terminal rack are taxable. State income tax charts The position holder for that fuel is liable for the tax. State income tax charts Two-party exchanges. State income tax charts   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. State income tax charts A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. State income tax charts The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. State income tax charts The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. State income tax charts The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. State income tax charts The transaction is subject to a written contract. State income tax charts Terminal operator's liability. State income tax charts   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). State income tax charts   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. State income tax charts However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. State income tax charts The terminal operator is a registrant. State income tax charts The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. State income tax charts The terminal operator has no reason to believe any information on the certificate is false. State income tax charts Removal from refinery. State income tax charts   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. State income tax charts It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. State income tax charts It is made at the refinery rack. State income tax charts The refiner is liable for the tax. State income tax charts Exception. State income tax charts   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. State income tax charts The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. State income tax charts The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. State income tax charts The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. State income tax charts Entry into the United States. State income tax charts   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. State income tax charts It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. State income tax charts It is not made by bulk transfer. State income tax charts The enterer is liable for the tax. State income tax charts Importer of record's liability. State income tax charts   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. State income tax charts   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. State income tax charts The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. State income tax charts The importer of record has no reason to believe any information in the certificate is false. State income tax charts Customs bond. State income tax charts   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. State income tax charts Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. State income tax charts   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. State income tax charts The position holder is liable for the tax. State income tax charts The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. State income tax charts However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. State income tax charts Bulk transfers not received at approved terminal or refinery. State income tax charts   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. State income tax charts No tax was previously imposed (as discussed earlier) on any of the following events. State income tax charts The removal from the refinery. State income tax charts The entry into the United States. State income tax charts The removal from a terminal by an unregistered position holder. State income tax charts Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). State income tax charts   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. State income tax charts However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. State income tax charts The owner is a registrant. State income tax charts The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. State income tax charts The owner has no reason to believe any information on the certificate is false. State income tax charts The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. State income tax charts The operator is jointly and severally liable if the owner does not meet these conditions. State income tax charts Sales to unregistered person. State income tax charts   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. State income tax charts   The seller is liable for the tax. State income tax charts However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. State income tax charts The seller is a registrant. State income tax charts The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. State income tax charts The seller has no reason to believe any information on the certificate is false. State income tax charts The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. State income tax charts The buyer is jointly and severally liable if the seller does not meet these conditions. State income tax charts Exception. State income tax charts   The tax does not apply to a sale if all of the following apply. State income tax charts The buyer's principal place of business is not in the United States. State income tax charts The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. State income tax charts The seller is a registrant and the exporter of record. State income tax charts The fuel was exported. State income tax charts Removal or sale of blended diesel fuel or kerosene. State income tax charts   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. State income tax charts Blended taxable fuel produced using biodiesel is subject to the tax. State income tax charts See Blended taxable fuel under Definitions, earlier. State income tax charts   The blender is liable for the tax. State income tax charts The tax is figured on the number of gallons not previously subject to the tax. State income tax charts   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. State income tax charts Generally, the biodiesel mixture must be diesel fuel (defined earlier). State income tax charts See Form 720 to report this tax. State income tax charts You also must be registered by the IRS as a blender. State income tax charts See Form 637 for more information. State income tax charts   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. State income tax charts Additional persons liable. State income tax charts   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. State income tax charts Credits or Refunds. State income tax charts   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. State income tax charts For more information, see chapter 2. State income tax charts Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. State income tax charts 001 per gallon LUST tax as discussed below, unless the fuel is for export. State income tax charts The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. State income tax charts The person otherwise liable for tax (for example, the position holder) is a registrant. State income tax charts In the case of a removal from a terminal, the terminal is an approved terminal. State income tax charts The diesel fuel or kerosene satisfies the dyeing requirements (described next). State income tax charts Dyeing requirements. State income tax charts   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. State income tax charts It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. State income tax charts 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. State income tax charts Is indelibly dyed by mechanical injection. State income tax charts See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. State income tax charts Notice required. State income tax charts   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. State income tax charts   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. State income tax charts   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). State income tax charts That seller is subject to the penalty described next. State income tax charts Penalty. State income tax charts   A penalty is imposed on a person if any of the following situations apply. State income tax charts Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. State income tax charts Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. State income tax charts The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. State income tax charts The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. State income tax charts   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. State income tax charts After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. State income tax charts   This penalty is in addition to any tax imposed on the fuel. State income tax charts   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. State income tax charts   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. State income tax charts   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. State income tax charts However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. State income tax charts The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. State income tax charts Exception to penalty. State income tax charts   The penalty under item (3) will not apply in any of the following situations. State income tax charts Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. State income tax charts Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. State income tax charts The alteration or attempted alteration occurs in an exempt area of Alaska. State income tax charts See Removal for sale or use in Alaska, later. State income tax charts Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. State income tax charts Alaska and Feedstocks Tax of $. State income tax charts 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). State income tax charts Undyed kerosene used for feedstock purposes. State income tax charts Removal for sale or use in Alaska. State income tax charts   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. State income tax charts The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. State income tax charts The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. State income tax charts In the case of a removal from a terminal, the terminal is an approved terminal. State income tax charts The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. State income tax charts   If all three of the requirements above are not met, then tax is imposed at $. State income tax charts 244 per gallon. State income tax charts   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. State income tax charts Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. State income tax charts Later sales. State income tax charts   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. State income tax charts The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. State income tax charts However, the sale is not taxable (other than the LUST tax at $. State income tax charts 001 per gallon) if all the following requirements are met. State income tax charts The fuel is sold in Alaska for certain nontaxable uses. State income tax charts The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. State income tax charts The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. State income tax charts Feedstock purposes. State income tax charts   The $. State income tax charts 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. State income tax charts The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. State income tax charts In the case of a removal from a terminal, the terminal is an approved terminal. State income tax charts Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. State income tax charts   If all of the requirements above are not met, then tax is imposed at $. State income tax charts 244 per gallon. State income tax charts   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. State income tax charts For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. State income tax charts A feedstock user is a person that uses kerosene for a feedstock purpose. State income tax charts A registered feedstock user is a person that has been registered by the IRS as a feedstock user. State income tax charts See Registration Requirements, earlier. State income tax charts Later sales. State income tax charts   The excise tax ($. State income tax charts 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. State income tax charts The tax is imposed at the time of the later sale and that seller is liable for the tax. State income tax charts Certificate. State income tax charts   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. State income tax charts The certificate may be included as part of any business records normally used for a sale. State income tax charts A model certificate is shown in the Appendix as Model Certificate G. State income tax charts Your certificate must contain all information necessary to complete the model. State income tax charts   A certificate expires on the earliest of the following dates. State income tax charts The date 1 year after the effective date (not earlier than the date signed) of the certificate. State income tax charts The date the seller is provided a new certificate or notice that the current certificate is invalid. State income tax charts The date the seller is notified the buyer's registration has been revoked or suspended. State income tax charts   The buyer must provide a new certificate if any information on a certificate has changed. State income tax charts Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. State income tax charts Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. State income tax charts Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. State income tax charts Any liquid other than gasoline, diesel fuel, or kerosene. State income tax charts Generally, this back-up tax is imposed at a rate of $. State income tax charts 244 per gallon. State income tax charts Liability for tax. State income tax charts   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. State income tax charts In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. State income tax charts Exemptions from the back-up tax. State income tax charts   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. State income tax charts   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. State income tax charts Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. State income tax charts A reduced tax rate of $. State income tax charts 198 per gallon is imposed on a diesel-water fuel emulsion. State income tax charts To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. State income tax charts If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. State income tax charts 244 per gallon. State income tax charts Credits or refunds. State income tax charts   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. State income tax charts Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. State income tax charts 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). State income tax charts For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. State income tax charts 219. State income tax charts The rate of $. State income tax charts 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. State income tax charts The airport terminal does not need to be a secured airport terminal for this rate to apply. State income tax charts However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. State income tax charts For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. State income tax charts 044 per gallon. State income tax charts For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. State income tax charts 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. State income tax charts See Terminal located within a secured area of an airport, later. State income tax charts In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. State income tax charts For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. State income tax charts 001. State income tax charts There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. State income tax charts The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. State income tax charts See Terminal located within a secured area of an airport, later. State income tax charts In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. State income tax charts The position holder is liable for the $. State income tax charts 001 per gallon tax. State income tax charts For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. State income tax charts 141 per gallon applies. State income tax charts Certain refueler trucks, tankers, and tank wagons treated as terminals. State income tax charts   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. State income tax charts Such terminal is located within an area of an airport. State income tax charts Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. State income tax charts Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. State income tax charts The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. State income tax charts Information reporting will be required by terminal operators regarding this provision. State income tax charts Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. State income tax charts Terminal located within a secured area of an airport. State income tax charts   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. State income tax charts This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. State income tax charts Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. State income tax charts 044 per gallon. State income tax charts However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). State income tax charts For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. State income tax charts For the aircraft operator to be liable for the tax $. State income tax charts 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. State income tax charts Commercial aviation. State income tax charts   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. State income tax charts However, commercial aviation does not include any of the following uses. State income tax charts Any use exclusively for the purpose of skydiving. State income tax charts Certain air transportation by seaplane. State income tax charts See Seaplanes under Transportation of Persons by Air in chapter 4. State income tax charts Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. State income tax charts For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. State income tax charts Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. State income tax charts For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. State income tax charts Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. State income tax charts See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. State income tax charts Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. State income tax charts 141 per gallon. State income tax charts The fractional ownership program manager is liable for the tax. State income tax charts The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. State income tax charts If the surtax is imposed, the following air transportation taxes do not apply. State income tax charts Transportation of persons by air. State income tax charts Transportation of property by air. State income tax charts Use of international air travel facilities. State income tax charts These taxes are described under Air Transportation Taxes, later. State income tax charts A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. State income tax charts Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. State income tax charts Fractional program aircraft. State income tax charts   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. State income tax charts S. State income tax charts   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. State income tax charts In such situations, the flight is not commercial aviation. State income tax charts Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. State income tax charts Fractional owner. State income tax charts   Any person owning any interest (including the entire interest) in a fractional program aircraft. State income tax charts Dry lease aircraft exchange. State income tax charts   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. State income tax charts Special rule relating to deadhead service. State income tax charts   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. State income tax charts More information. State income tax charts   See section 4043 for more information on the surtax. State income tax charts Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. State income tax charts Certificate. State income tax charts   The certificate may be included as part of any business records normally used for a sale. State income tax charts See Model Certificate K in the Appendix. State income tax charts   A certificate expires on the earliest of the following dates. State income tax charts The date 1 year after the effective date (not earlier than the date signed) of the certificate. State income tax charts The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. State income tax charts The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. State income tax charts   The buyer must provide a new certificate if any information on a certificate has changed. State income tax charts   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. State income tax charts Exempt use. State income tax charts   The rate on kerosene for use in aviation is $. State income tax charts 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. State income tax charts An exempt use includes kerosene for the exclusive use of a state or local government. State income tax charts There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. State income tax charts Flash title transaction. State income tax charts   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. State income tax charts In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. State income tax charts In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. State income tax charts Reseller statement. State income tax charts   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. State income tax charts Credits or Refunds. State income tax charts   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). State income tax charts A claim may be made by a registered ultimate vendor for certain sales. State income tax charts For more information, see chapter 2. State income tax charts Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. State income tax charts Other Fuels include alternative fuels. State income tax charts Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. State income tax charts Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. State income tax charts Qualified methanol and ethanol fuels. State income tax charts   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. State income tax charts The tax rates are listed in the Instructions for Form 720. State income tax charts Partially exempt methanol and ethanol fuels. State income tax charts   A reduced tax rate applies to these fuels. State income tax charts Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. State income tax charts The tax rates are listed in the Instructions for Form 720. State income tax charts Motor vehicles. State income tax charts   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. State income tax charts They are propelled by a motor. State income tax charts They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t