How do I prepare for IFTA reporting?
IFTA preparation starts with what you track every day, not what you scramble to pull together at quarter end. The carriers who file smoothly are the ones who built tracking into their routine from the beginning.
Keep a mileage log for every trip that records odometer readings at each state line crossing. Write down the state you entered, the odometer reading when you crossed, and keep it consistent throughout the quarter. Electronic logging devices make this easier by automatically recording location data, but you still need a system to pull that data into jurisdiction-by-jurisdiction totals.
Fuel receipts are the other half of the equation. Every fuel purchase needs a receipt showing the date, location, number of gallons, and the state where you fueled. Keep these organized by week or by trip. Missing or illegible receipts create problems during an audit because you can’t claim fuel tax credits without documentation.
At quarter end, you’ll calculate total miles driven in each jurisdiction and total fuel purchased in each jurisdiction. The IFTA return uses these numbers to figure out whether you owe additional fuel taxes to certain states or get credits from others. States have different fuel tax rates, and those rates change quarterly. You’ll need to look up the current rates when you file.
Quarterly returns are due by the last day of the month following the quarter. First quarter runs January through March and is due April 30. Second quarter is due July 31. Third quarter is due October 31. Fourth quarter is due January 31. Late filings mean penalties and interest, and if you owe money, those penalties stack up fast.
New Mexico is your base jurisdiction if your trucking business is based here. That means you file your IFTA return through the New Mexico Taxation and Revenue Department. Your base jurisdiction is where you submit the return, but the return covers miles and fuel for every state you operated in during the quarter.
The math isn’t complicated once you have good data. The hard part is having that data when you need it. Carriers who track mileage and keep receipts consistently spend maybe an hour preparing their quarterly return. Those who reconstruct everything from memory and bank statements spend days and still miss things.
If IFTA tracking feels overwhelming on top of running routes, consider working with bookkeeping services in Santa Fe NM that understand transportation accounting. A bookkeeper who knows IFTA can set up systems that make quarterly filing routine and catch errors before they become audit problems.
Santa Fe's Small Business Bookkeeper
The Next Step:
A Quick Conversation
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.
More Questions
How do I separate personal use from rental use in my books?
Track every day the property is used and by whom. Allocate shared expenses like insurance, utilities, and repairs based on the ratio of rental days to total use days. Keep direct rental expenses separate from direct personal costs.
Read answerShould I use QuickBooks or property management software?
Property management software handles operations like tenant tracking and rent collection. QuickBooks handles actual accounting and financial reporting. Many property managers use both, with PM software syncing to QuickBooks for clean books.
Read answerShould artists hire a bookkeeper?
Artists with gallery sales, consignment inventory, and irregular income often reach a point where professional bookkeeping pays for itself in time saved and taxes handled correctly.
Read answerHow do I track multiple rental properties in one system?
Use classes or locations in QuickBooks to tag every transaction to a specific property. This lets you run profit and loss reports by property and see which units actually make money.
Read answerHow do I allocate overhead costs to construction jobs?
Calculate your total annual overhead, divide by total direct job costs or labor hours to get a percentage, then apply that rate to each job. This shows true profitability instead of just gross margin.
Read answerShould I use QuickBooks Desktop or Online for construction?
For most construction businesses today, QuickBooks Online with the Plus or Advanced plan handles job costing and progress invoicing well enough. Desktop still has more robust job costing features, but its days are numbered as Intuit pushes everyone toward Online.
Read answer
