Form 4136 - Credit For Federal Tax Paid On Fuels

Form 4136, "Credit for Federal Tax Paid on Fuels," is used to claim a credit for federal fuel taxes that have been paid on certain types of fuel used in specific situations. Here's a quick rundown of its main purposes:

1. Claiming Credits on Fuels Used for Non-Taxable Purposes: If you've paid federal excise tax on fuels that are used for purposes not subject to tax, such as off-highway use, you can claim a credit. This includes fuel used in machinery, certain vehicles, or agricultural equipment.
2. Refunds for Fuel Used in Non-Taxable Activities: You can also use the form to claim a refund for fuel tax if the fuel was used in a way that is exempt from tax, such as for farming or for certain types of non-highway vehicle operations.
3. Credits for Fuel Used in Certain Tax-Exempt Vehicles: The form helps claim credits for fuels used in vehicles or equipment that are exempt from federal fuel taxes, like those used by certain government entities or for specific charitable purposes.

In summary, Form 4136 is essentially used to recover federal fuel taxes paid when the fuel was used in non-taxable or exempt situations.