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Form 8849 Schedule 1

What is Form 8849 Schedule 1?

Form 8849 Schedule 1, Issued by the Department of the Treasury's Internal Revenue Service (IRS), serves the purpose of facilitating claims for a refund related to the nontaxable use of fuels.

This form is designed for individuals or entities who have purchased specific fuels for designated purposes and are now seeking a refund for the taxes paid on these fuels. The fuels covered in this form range from gasoline and diesel to alternative fuels like liquefied petroleum gas and compressed natural gas.

We will involve understanding the various sections, such as nontaxable use of gasoline, nontaxable use of aviation gasoline, nontaxable use of undyed diesel fuel, nontaxable use of undyed kerosene, kerosene used in aviation, nontaxable use of alternative fuel, nontaxable use of a diesel-water fuel emulsion, and exported dyed fuels and gasoline blendstocks.

What are the Main Objectives of Form 8849 Schedule 1?

The primary purpose of Form 8849 Schedule 1 is to facilitate the claiming of refunds for nontaxable uses of fuel. The data that is required for it includes detailed information about the types of fuel, their usage, and corresponding tax rates.

By accurately completing Schedule 1 and attaching it to Form 8849, claimants can seek refunds or credits for federal excise taxes previously paid on fuel.

4 Benefits of Form 8849 Schedule 1

Claim Refunds or Credits

Schedule 1 empowers claimants to seek refunds or credits, effectively reducing their tax liability associated with fuel usage.

Preventing Double Taxation

By specifying nontaxable uses, Schedule 1 acts as a safeguard against double taxation, ensuring that taxes are not levied on fuel sales already taxed.


Adherence to IRS Regulations

Filing Schedule 1 signifies compliance with IRS regulations, reducing the risk of penalties or audits. It demonstrates a commitment to adhering to tax laws.

Financial Savings

Claiming refunds for federal excise taxes paid on fuel sales leads to potential financial savings. This can enhance profitability and allow businesses to allocate savings for growth.

Streamlined Tax Processes

Schedule 1 simplifies the process of claiming fuel tax credits or refunds. Its structured format ensures accurate reporting, minimizing the likelihood of errors in the tax filing process.

Who is Eligible to File Form 8849 Schedule 1?

Several entities and individuals are eligible to file Form 8849, Schedule 1, including:


  1. Ultimate Purchasers of Fuel
  2. Interstate Truckers
  3. Bus Owners/Operators
  4. Government Entities
  5. Nonprofit Educational Organizations
  6. Nonprofit Volunteer Fire Departments

Specific eligibility criteria apply to each category, ensuring that those who have paid federal excise taxes on specified fuels used in their operations can benefit from Schedule 1.

Form 8849 Schedule 1 Specific Instructions

1. Claim Requirements

To file a claim using Schedule 1, certain requirements must be met:

  1. The claimed amount must be at least $750.
  2. The claim must be filed in the first quarter after the earliest quarter of the income tax quarter of the claimant that is included in the claim.
  3. Only one claim may be filed for a quarter.

Additional information on annual claims is available in the Form 8849 instructions.

2. Total Refund

Claimants need to add all amounts in column (d) and enter the total refund in the designated box at the top of the schedule.

3. Type of Use

The fuel claimed must have been used for specific types of use, as detailed in the instructions for lines 1 through 7. The Type of Use Table in the Form 8849 instructions provides a comprehensive list of nontaxable uses.

4. Exported Taxable Fuel

For claims related to exported taxable fuel, claimants must include proof of exportation with their records. This includes documentation such as an export bill of lading, a certificate of exportation, or a statement from the foreign consignee.

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How to File Form 8849 Schedule 1 manually?

Source: IRS Form 8849 Schedule 2

Let's explore each line of Schedule 1, highlighting the allowable uses and specific information required for accurate reporting. 

Line 1: Nontaxable Use of Gasoline

Ensure accurate categorization of gasoline use based on the specified types of use.

Allowable Sale:  

For 1a: Gasoline used for types of use 2, 4, 5, 7, 11, 12, 13, 14, or 15, excluding personal use or use in a motorboat.

For 1b: Gasoline exported during the period of claim (type of use 3).

Line 2: Nontaxable Use of Aviation Gasoline

Clearly distinguish between different types of aviation gasoline uses. Provide proof of exportation if claiming for exported taxable fuel.

Allowable Sale: 

For 2b: Aviation gasoline used for types of use 2, 9, 10, 11, 13, 14, 15, or 16.

For 2c: Aviation gasoline exported during the period of claim (type of use 3).

For 2d: Additional claim for aviation gasoline used for type of use 9.

Line 3: Nontaxable Use of Undyed Diesel Fuel

Certify that diesel fuel claimed on 3a did not contain visible evidence of dye. Provide a detailed explanation if any part of the claimed diesel fuel contained visible evidence of dye.

Allowable Sale: 

For 3a: Diesel fuel used for types of use 2, 6, 7, 8, 11, 12, 13, 14, or 15.

For 3e: Diesel fuel exported during the period of claim (type of use 3).

Line 4: Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation)

Certify that the kerosene claimed on 4a did not contain visible evidence of dye. Understand that claims for kerosene sales from a blocked pump are not allowed on line 4.

Allowable Sale: 

For 4a: Kerosene is used for types of use 2, 6, 7, 8, 11, 12, 13, 14, or 15.

For 4d: Kerosene exported during the period of claim (type of use 3).

Line 5: Kerosene Used in Aviation

Certify that the right to make the claim has not been waived. Attach a statement explaining the claim for relief provided by the tax holiday for kerosene used in commercial aviation from March 28, 2020, through December 31, 2020.

Allowable Sale: 

For 5a and 5b: kerosene is used in commercial aviation (other than foreign trade).

For 5c, 5d, and 5e: Kerosene used in noncommercial aviation (except for nonexempt, noncommercial aviation, and exclusive use by a state, political subdivision of a state, or the District of Columbia).

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Line 6: Nontaxable Use of Alternative Fuel

Apply the correct credit rate based on the type of alternative fuel used. Be aware of the reduced credit rate for use on certain intercity and local buses (type of use 5).

Allowable Sale: 

Various alternative fuels are used for types of use 1, 2, 4, 5, 6, 7, 11, 13, 14, or 15.

Line 7: Nontaxable Use of a Diesel-Water Fuel Emulsion

Certify that the diesel-water fuel emulsion claimed on 7a did not contain visible evidence of dye. Understand the reduced credit rate for use on certain intercity and local buses (type of use 5).

Allowable Sale: 

For 7a: Diesel-water fuel emulsion used for types of use 1, 2, 5, 6, 7, 8, 11, 12, 13, 14, or 15.

For 7b: Diesel-water fuel emulsion exported during the period of claim (type of use 3).

Line 8: Exported Dyed Fuels and Gasoline Blendstocks

Be cautious about the claim rates for exported dyed fuels and gasoline blend stocks.

Distinguish between exported dyed diesel fuel and exported gasoline blendstocks taxed at different rates.

Allowable Sale: 

Dyed diesel fuel, dyed kerosene, and gasoline blendstocks were exported during the period of the claim.

Form 8849 Schedule 1 Deadline

The filing is allowed for only one claim per quarter. Hence, the form must be filed in the first quarter that follows the last quarter of any claim.  

Say suppose the amount in any month from April through June and July through September must be filed between the dates 1st October and 31st December.  

Understand the specific rules and requirements for each type of use to ensure accurate reporting and eligibility for refunds.

claim your refund now

Claim your refund now