IFTA Reporting Made Simple

It's April 29th. Your IFTA report is due tomorrow. You have a shoebox full of fuel receipts, a notebook with some mileage numbers (but not all of them), and no idea what you actually owe.

You're not alone. Most new owner-operators dread IFTA reporting. It seems complicated, confusing, and easy to screw up.

This guide makes it simple. You'll learn exactly what IFTA is, what you need to track, how to calculate what you owe, and how to file on time without paying penalties.

What IFTA Is (and Why You Need It)

IFTA = International Fuel Tax Agreement

Before IFTA (1996), truck drivers had to buy fuel tax permits for every state they drove through. Nightmare paperwork.

IFTA simplified it:

• Register in your home state
• Pay one quarterly tax report
• Your home state distributes money to other states where you operated

Who needs IFTA:

• Trucks over 26,000 lbs GVWR
• Operating in 2+ states or Canadian provinces
• Power units (tractors, straight trucks, not trailers)

Who doesn't need IFTA:

• Trucks under 26,000 lbs
• Operating only in your home state
• Recreational vehicles

Example: You're based in Ohio. You run loads to Michigan, Indiana, Kentucky, Pennsylvania.

Without IFTA: You'd need 5 separate fuel tax permits and file 5 separate reports.

With IFTA: One quarterly report to Ohio. Ohio distributes your tax payments to the other states.

IFTA Quarterly Deadlines

IFTA reports are due quarterly:

Quarter	Months	Due Date
Q1	January-March	April 30
Q2	April-June	July 31
Q3	July-September	October 31
Q4	October-December	January 31

Due date = last day of the month following the quarter

If due date falls on weekend/holiday: Next business day is the deadline.

Important: You MUST file even if you had zero miles that quarter. Zero-mile reports are required.

IFTA Penalties (Why You Want to File On Time)

Late filing penalty:

• $50 minimum OR
• 10% of net tax liability
• Whichever is greater

Plus:

• 1% interest per month on delinquent taxes
• License suspension if you don't pay
• $50 reinstatement fee

Example:

You owe $600 in IFTA taxes, file 2 months late:

• Late penalty: $60 (10% of $600)
• Interest: $12 (1% x 2 months x $600)
• Total owed: $672 instead of $600

Worse example:

Zero tax liability (you got a refund), but filed late:

• Late penalty: $50 (minimum)
• You STILL pay $50 even though you owed nothing

Bottom line: File on time. Set calendar reminders for April 30, July 31, October 31, January 31.

What You Need to Track (Daily)

IFTA requires detailed records. Here's exactly what to track:

1. Miles Driven Per State

What to record:

• Odometer reading when crossing state line
• State you're entering
• Date and time

Example log entry:

4/15/26 - 2:30 PM - Crossed into Indiana - Odometer: 345,678
4/15/26 - 4:15 PM - Crossed into Illinois - Odometer: 345,795

Miles driven in Indiana: 345,795 - 345,678 = 117 miles

Critical: You need the actual odometer reading at EVERY state line crossing. Estimates don't count.

2. Fuel Purchases

What to record:

• Date of purchase
• Gallons purchased
• State where fuel was purchased
• Price per gallon
• Total cost
• Keep the receipt (required for 4 years)

What the receipt must show:

• Seller name and address
• Date of purchase
• Gallons (NOT dollar amount - gallons!)
• Fuel type (diesel)
• Unit price
• Total price

Bad fuel receipt (won't satisfy audit):

Joe's Truck Stop
Fuel: $280.50

Good fuel receipt:

Joe's Truck Stop
123 Main St, Columbus OH 43215
Date: 4/15/26
Diesel: 75.3 gallons @ $3.73/gal
Total: $280.87

Pro tip: Take photo of every fuel receipt immediately. Receipts fade. Phone photos don't.

3. Trip Records

For each trip, document:

• Origin and destination
• Route taken
• Start and end odometer readings
• Miles per state
• Fuel purchases

Why: Auditors want to see complete trip records. Missing trips = red flag = deeper audit.

How to Calculate IFTA Taxes (Step-by-Step)

IFTA looks complicated but breaks down into simple steps.

Step 1: Calculate Total Miles

Add up miles driven in ALL states during the quarter.

Example:

• Ohio: 8,500 miles
• Indiana: 3,200 miles
• Michigan: 2,800 miles
• Pennsylvania: 1,500 miles
• Total: 16,000 miles

Step 2: Calculate Total Fuel Purchased

Add up gallons purchased in ALL states during the quarter.

Example:

• Ohio: 1,200 gallons
• Indiana: 400 gallons
• Michigan: 350 gallons
• Pennsylvania: 250 gallons
• Total: 2,200 gallons

Step 3: Calculate Fleet MPG

Total miles ÷ total gallons = fleet MPG

16,000 miles ÷ 2,200 gallons = 7.27 MPG

Step 4: Calculate Gallons Consumed Per State

State miles ÷ fleet MPG = gallons consumed in that state

• Ohio: 8,500 miles ÷ 7.27 MPG = 1,169 gallons consumed
• Indiana: 3,200 miles ÷ 7.27 MPG = 440 gallons consumed
• Michigan: 2,800 miles ÷ 7.27 MPG = 385 gallons consumed
• Pennsylvania: 1,500 miles ÷ 7.27 MPG = 206 gallons consumed

Step 5: Calculate Tax Due/Credit Per State

(Gallons consumed - gallons purchased) x state tax rate = tax owed or credit

State fuel tax rates (2026 examples):

• Ohio: $0.47/gallon
• Indiana: $0.54/gallon
• Michigan: $0.27/gallon
• Pennsylvania: $0.577/gallon

Ohio calculation:

• Consumed: 1,169 gallons
• Purchased: 1,200 gallons
• Difference: -31 gallons (you bought MORE than you used)
• Tax: -31 x $0.47 = -$14.57 credit

Indiana calculation:

• Consumed: 440 gallons
• Purchased: 400 gallons
• Difference: +40 gallons (you used MORE than you bought)
• Tax: +40 x $0.54 = +$21.60 owed

Michigan calculation:

• Consumed: 385 gallons
• Purchased: 350 gallons
• Difference: +35 gallons
• Tax: +35 x $0.27 = +$9.45 owed

Pennsylvania calculation:

• Consumed: 206 gallons
• Purchased: 250 gallons
• Difference: -44 gallons (credit)
• Tax: -44 x $0.577 = -$25.39 credit

Step 6: Calculate Net Tax Due

Add up all state amounts:

Ohio: -$14.57 Indiana: +$21.60 Michigan: +$9.45 Pennsylvania: -$25.39 Net tax due: -$8.91 (you get a refund)

If the total is positive, you owe money. If negative, you get a refund.

Real Example: Detroit to Cincinnati Route

From the search results, here's a concrete real-world example:

Scenario: You run Detroit, MI to Cincinnati, OH three times per week. Over the quarter (13 weeks), you logged:

Total miles: 18,950.4 miles

• Ohio miles: 10,200 miles
• Michigan miles: 8,750.4 miles

Fuel purchases: 2,707.2 gallons, all purchased in Ohio (better prices) Total spent: $8,798.40 (average $3.25/gallon)

Fleet MPG: 18,950.4 ÷ 2,707.2 = 7.0 MPG

Gallons consumed:

• Ohio: 10,200 ÷ 7.0 = 1,457.1 gallons
• Michigan: 8,750.4 ÷ 7.0 = 1,250.1 gallons

Tax calculation (using 2026 rates):

Ohio:

• Consumed: 1,457.1 gallons
• Purchased: 2,707.2 gallons
• Difference: -1,250.1 gallons (huge credit - you overpaid Ohio)
• Tax: -1,250.1 x $0.47 = -$587.55 credit

Michigan:

• Consumed: 1,250.1 gallons
• Purchased: 0 gallons
• Difference: +1,250.1 gallons (you owe Michigan)
• Tax: +1,250.1 x $0.27 = +$337.53 owed

Net tax due: -$587.55 + $337.53 = -$250.02 refund

What happened: You bought all your fuel in Ohio and paid Ohio's fuel tax. But you drove 8,750 miles in Michigan and consumed fuel there. The IFTA system redistributes your tax payment - Ohio refunds you $587.55, and you send $337.53 to Michigan. You net a $250 refund.

This is how IFTA works: It redistributes fuel taxes so each state gets tax revenue based on miles driven, not where you bought fuel.

Common IFTA Mistakes (and How to Avoid Them)

Mistake #1: Missing Miles

The problem: You forget to log a trip. Now your fuel mileage doesn't match your recorded miles.

From TruckersReport forum:

"A complete missing trip will make them dig deeper during audits. If they see gaps, they will ask questions. Trip reports are supposed to show the route taken also so they can determine mileage per state."

How to avoid:

• Log EVERY trip immediately (don't wait till end of day)
• Include all miles: loaded miles, deadhead miles, bobtail miles, even shop test drives
• Use ELD data as backup verification

Mistake #2: ELD Reports Don't Match Fuel Receipts

The problem: Your ELD says you drove 15,000 miles. Your fuel receipts show you bought enough fuel for 12,000 miles. Auditors notice.

From TruckersReport forum:

Garmin has proved accurate for recording jurisdiction miles vs ELD Big Road/Fleet Complete which is a proven failure every quarter."

"An accountant with 40 years of experience said that KeepTruckin reports are not going to satisfy the auditors request for keeping track of all of the data properly."

How to avoid:

• Verify ELD IFTA reports match your fuel receipts BEFORE filing
• If ELD is inaccurate, use manual trip sheets instead
• Don't blindly trust ELD output - check the math yourself

Mistake #3: Faded or Lost Fuel Receipts

The problem: Thermal paper receipts fade in 6 months. Audit happens in year 2. You can't prove your fuel purchases.

From TruckersReport forum:

"Fuel receipts may fade or plainly, get lost."

How to avoid:

• Take photo of EVERY receipt immediately after fueling
• Store photos in cloud (Google Drive, Dropbox, etc.)
• Email yourself the photo as backup
• Physical receipts in folder as backup (even if faded, photo is primary)

Mistake #4: Not Filing Zero-Mile Quarter

The problem: You didn't operate Q1 (truck was in shop). You think "no miles = no report needed."

Wrong. You MUST file even if zero miles.

Penalty: $50 for not filing, even though you owed $0.

How to avoid:

• File every quarter, even if zero miles
• Takes 5 minutes to file zero-mile report
• Saves you $50 penalty

Mistake #5: Rounding Miles Per State

The problem: You estimate: "Eh, I drove about 5,000 miles in Indiana this quarter."

Wrong. IFTA requires ACTUAL odometer readings.

How to avoid:

• Record exact odometer at every state line
• Use ELD for verification
• Don't round or estimate

How to File IFTA Reports

Method #1: Online Filing (Recommended)

Most states offer online IFTA filing portals.

Typical process:

1. Log into your state's IFTA portal
2. Enter miles driven per state
3. Enter gallons purchased per state
4. System calculates tax owed/refund
5. Review and submit
6. Pay balance (if owed) electronically

Pros:

• Fast (15-30 minutes)
• Math done automatically
• Instant confirmation
• Electronic payment

Cons:

• Must enter data correctly (garbage in = garbage out)

Method #2: IFTA Software

Third-party software like TruckLogics, TruckingOffice, etc.

How it works:

• Import fuel receipts (photo upload or manual entry)
• Import trip logs from ELD or manual entry
• Software calculates IFTA automatically
• Export report to state portal

Pros:

• Organizes receipts year-round
• Calculates quarterly automatically
• Less manual data entry

Cons:

• Monthly cost ($30-$100/month depending on features)

Method #3: Accountant/Bookkeeper

Pay someone else to do it.

Cost: $50-$150 per quarter

Pros:

• You don't have to think about it
• Less risk of errors
• Professional handles audits if they occur

Cons:

• Costs money
• You still need to provide organized records

What Triggers an IFTA Audit

Red flags that get you audited:

1. Fuel Mileage Doesn't Make Sense

Example: Your truck gets 4 MPG according to your IFTA report, but typical MPG is 6-7 MPG.

Why it happens: Missing fuel receipts or missing trip miles.

What auditors think: You're hiding fuel purchases to avoid taxes.

2. Missing Quarters

You file Q1, Q2, Q4... but skip Q3.

What auditors think: You operated Q3 but didn't want to pay taxes.

3. Drastically Different Reports Quarter-to-Quarter

Q1: 15,000 miles Q2: 18,000 miles Q3: 5,000 miles (truck was in shop for 2 months) Q4: 16,000 miles

Q3 looks suspicious. Did you really only drive 5,000 miles, or did you fail to report 10,000 miles?

How to avoid: Keep shop repair invoices showing truck was down. Attach explanation to Q3 report.

4. Tax Credit Every Single Quarter

If you consistently show refunds every quarter, auditors wonder if you're underreporting miles in high-tax states.

How to avoid: Keep detailed trip logs proving miles per state are accurate.

5. Fuel Purchased Only in Lowest-Tax States

You drive through 6 states but only buy fuel in the two with lowest tax rates.

Is this legal? Yes.

Does it trigger audit? Sometimes.

How to avoid: Keep trip logs proving you really did buy all fuel in those states (because they had better prices or were on your route).

IFTA Record Keeping Requirements

You must keep records for 4 years.

Records required:

• Individual trip sheets
• Fuel receipts
• Vehicle maintenance records
• Distance records (odometer readings)
• ELD logs (if using ELD)

Format: Paper or electronic (photos, scans, digital files)

Storage: Must be available within your base state if audited

What happens if you can't produce records during audit:

• Auditor estimates your liability (usually much higher than reality)
• You pay the estimated amount
• No appeal without records

IFTA and ELDs: What You Need to Know

ELDs can help with IFTA, but they're not perfect.

What ELDs Track Well:

• Miles driven per state
• Routes taken
• Border crossings
• Total miles

What ELDs DON'T Track:

• Fuel purchases
• Gallons purchased per state
• Fuel prices

You still need fuel receipts.

ELD IFTA Reports: Verify Before Filing

From TruckersReport forum:

"KeepTruckin reports are not going to satisfy the auditors."

"Garmin has proved accurate...ELD Big Road/Fleet Complete which is a proven failure every quarter."

The issue: Some ELDs have IFTA reporting features that are inaccurate. They miss miles, duplicate miles, or assign miles to wrong states.

Best practice:

1. Run ELD IFTA report
2. Manually verify a few trips against your logs
3. Check if total miles match odometer
4. If numbers don't match, use manual trip sheets instead

Don't blindly trust ELD output.

Self-Audit Checklist (Before Filing)

Use this checklist quarterly before submitting IFTA report:

Miles:

• Do total miles match odometer change for quarter?
• Are ALL trips included (loaded, deadhead, bobtail)?
• Do state-by-state miles add up to total miles?
• Are border crossing times/dates logged?

Fuel:

• Do I have receipts for ALL fuel purchases?
• Do receipts show gallons (not just dollar amount)?
• Are receipts legible (or photos backed up)?
• Do total gallons purchased match fuel card statements?

Math:

• Does fleet MPG make sense (5-8 MPG typical)?
• If MPG is outside normal range, can I explain why?
• Did I double-check state tax rates (they change annually)?
• Do gallons consumed per state match miles driven ÷ MPG?

Filing:

• Is report due on time (last day of month following quarter)?
• Did I file even if zero miles?
• Did I pay any balance due?
• Did I save confirmation/receipt of filing?

If you answer "NO" to any question, fix it before filing.

Tax-Deductible vs Tax-Paying: Understanding the Difference

Common confusion: "I can deduct fuel on my taxes, so I don't pay IFTA taxes, right?"

Wrong.

IFTA taxes:

• Fuel excise taxes collected BY states
• You pay them when you buy fuel (included in pump price)
• IFTA redistributes those taxes to the states where you drove
• NOT deductible (you already paid them at the pump)

Federal income taxes:

• Tax on your PROFIT
• Fuel is a business expense
• You deduct fuel costs to reduce profit (and income tax owed)
• Separate from IFTA

Example: You buy 1,000 gallons of diesel at $3.50/gallon = $3,500 total.

• $3.50 includes roughly $0.50 in state/federal fuel taxes
• Those taxes are NOT deductible
• The $3.50/gallon COST is deductible as a business expense

IFTA doesn't change your fuel cost. It just makes sure the right state gets the tax money.

How FF Dispatch Helps Owner-Operators

IFTA filing is tedious but unavoidable. You'll spend 2-4 hours per quarter compiling records, entering data, and filing reports. That's time you're not earning revenue.

The bigger issue: If you're hauling cheap freight, IFTA refunds matter more. A $300 IFTA refund is meaningful when you're barely profitable. At better rates, a $300 refund is nice but not make-or-break.

FF Dispatch negotiates rates (averaging $2.40-2.80/mile) that give you margin to handle quarterly expenses like IFTA without stress. When you're earning 40-50% more per mile than spot market, administrative tasks feel less burdensome.

We handle load booking for 6% of gross revenue. No contracts, no hidden fees.

Contact: (302) 608-0609 | gia@dispatchff.com

Bottom Line

IFTA reporting is required quarterly if you operate in multiple states.

Quarterly deadlines:

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

What to track daily:

• Odometer reading at every state line crossing
• Fuel receipts (with gallons, not just dollar amount)
• Trip logs showing origin, destination, route

How to calculate:

1. Total miles driven per state
2. Total gallons purchased per state
3. Calculate fleet MPG (total miles ÷ total gallons)
4. Calculate gallons consumed per state (state miles ÷ fleet MPG)
5. Tax = (gallons consumed - gallons purchased) x state tax rate
6. Sum all states for net tax due or refund

Common mistakes to avoid:

• Missing trips in your logs
• Trusting ELD reports without verification
• Lost or faded fuel receipts
• Not filing zero-mile quarters
• Estimating instead of using actual odometer readings

Penalties for late filing:

• $50 minimum OR 10% of tax owed (whichever is greater)
• 1% monthly interest
• License suspension if unpaid

Keep records for 4 years (audits can go back 4 years).

Self-audit before filing: Verify miles match odometer, fuel receipts add up, MPG makes sense.

File on time, keep detailed records, verify ELD accuracy, and you'll never have IFTA problems.

---

Sources:

• IFTA Reporting Requirements - Arizona DOT
• IFTA Quarterly Fuel Tax Reporting Requirements - TruckLogics
• IFTA Fuel Tax Report Requirements - TruckingOffice
• Top IFTA Requirements: A Trucker's Guide - AtoB
• IFTA Filing Due Dates 2025 - TruckLogics
• IFTA Fuel Tax Reporting Complete Guide - AtoB
• Easiest Way To Calculate Your IFTA – 4 Step Guide - OnSwitchboard
• Fuel Tax for Truck Drivers - Quarterly IFTA Reporting
• IFTA Reporting Accurate? - TruckersReport Forum
• Using KeepTruckin ELD? IFTA Reports Accuracy - TruckersReport Forum
• 5 Red Flags That Can Trigger an IFTA Audit - FreightWaves
• 5 Common IFTA Reporting Mistakes - TruckingOffice