Schedule 1 (Form 8849), Nontaxable Use of Fuels, is the Internal Revenue Service (IRS) schedule on which an ultimate purchaser of certain fuels claims a refund of tax for fuel used in a nontaxable way. It is attached to Form 8849 and covers gasoline, aviation gasoline, undyed diesel fuel, undyed kerosene, kerosene used in aviation, alternative fuels, diesel-water fuel emulsion and exported dyed fuels. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the form and its latest information are published by the IRS at www.irs.gov/Form8849.
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What is Schedule 1 (Form 8849)?
Schedule 1 (Form 8849), Nontaxable Use of Fuels, is the IRS schedule an ultimate purchaser uses to claim a refund for taxed fuel that was used in a nontaxable use or exported. It is attached to Form 8849 and carries OMB No. 1545-1420.
The schedule lists the fuels a claim can be made for, each on its own line:
- Line 1, gasoline.
- Line 2, aviation gasoline.
- Line 3, undyed diesel fuel.
- Line 4, undyed kerosene other than kerosene used in aviation.
- Line 5, kerosene used in aviation.
- Line 6, alternative fuel.
- Line 7, diesel-water fuel emulsion.
- Line 8, exported dyed diesel fuel, dyed kerosene and gasoline blendstocks.
For each claim you enter the type of use in column (a), the rate in column (b), the gallons in column (c), the refund in column (d) (column (b) multiplied by column (c)) and the claim reference number (CRN) in column (e). The column (d) amounts are added and the result goes in the Total refund box at the top.
The fuel must have been used for one of the nontaxable types of use, which the instructions for lines 1 through 7 and the Type of Use Table in the Form 8849 instructions define. Schedule 1 must not be filed with any other schedule. The line 4 caution notes that claims for kerosene sales from a blocked pump are made only by registered ultimate vendors, using Schedule 2.
Who needs to file Schedule 1 (Form 8849)?
An ultimate purchaser of the fuels listed on the form who used the fuel in a nontaxable use, or exported it, files Schedule 1 (Form 8849) to claim a refund.
Conditions tied to specific lines:
- Lines 1a and 2b (types of use 13 and 14), 3d, 4c and 5: the claimant certifies that the right to make the claim has not been waived.
- Line 5a and 5b: the ultimate purchaser of kerosene used in commercial aviation (other than foreign trade).
- Lines 5c, 5d and 5e: the ultimate purchaser of kerosene used in noncommercial aviation, other than nonexempt noncommercial aviation and exclusive use by a state, a political subdivision of a state, or the District of Columbia.
- Lines 2d and 5e: the ultimate purchaser of aviation gasoline or kerosene used in foreign trade may claim the leaking underground storage tank (LUST) tax, if the right to claim has not been waived by giving the registered ultimate vendor an unexpired waiver.
- Lines 1b, 2c, 3e, 4d, 8a and 8b: fuel that was exported.
Do not use line 4 for kerosene sales from a blocked pump: only registered ultimate vendors make those claims, using Schedule 2. Do not file Schedule 1 together with any other schedule.
When to file Schedule 1 (Form 8849)
File the claim during the first quarter following the last quarter included in it. For example, a claim for the quarters July through September and October through December must be filed between January 1 and March 31.
The schedule sets three claim requirements. The amount claimed must reach the minimum stated on the form, which can be met with fuel used during any quarter of your income tax year or by adding amounts from quarters of that year for which no other claim was made. The claim must be filed in the quarter described above. Only one claim may be filed for a quarter.
If those requirements are not met, the schedule points to Annual Claims under Additional Information for Schedules 1, 2, and 3 in the Form 8849 instructions.
Kerosene used in commercial aviation from March 28, 2020, through December 31, 2020 (tax holiday) is treated as a nontaxable use and is claimed with type of use 15 on line 5c or 5d.
Documents you need
- A detailed explanation, if any of the undyed diesel fuel (line 3) or undyed kerosene (line 4) in the claim contained visible evidence of dye; also check the box on that line.
- A statement explaining that the claim is for the relief provided by the tax holiday, for kerosene used in commercial aviation from March 28, 2020, through December 31, 2020, claimed with type of use 15 on line 5c or 5d.
- Proof of exportation, kept with your records, for exported fuel claims on lines 1b, 2c, 3e, 4d, 7b, 8a and 8b: an export bill of lading, an export carrier agent's certificate, a customs officer's certificate of lading or a foreign consignee's statement.
How to fill out Schedule 1 (Form 8849)
Enter your name and identification number
At the top, write your name as shown on Form 8849 and your EIN or SSN. Leave the Total refund box until the end.
Enter the period of claim
Write the From and To dates in MMDDYYYY format. They cover the quarter or quarters your claim includes.
Read the Caution before line 1
Your claim certifies that you have the seller's name and address and the purchase dates. For claims on lines 1a and 2b (types of use 13 and 14), 3d, 4c and 5, you also certify that you have not waived the right to claim.
Complete line 1 for gasoline
Use line 1a for gasoline used in an allowable type of use and line 1b for exported gasoline. In each row enter the gallons in column (c), multiply by the printed rate for column (d), and add the CRN in column (e).
Complete line 2 for aviation gasoline
Use lines 2a and 2b for commercial aviation and other nontaxable use, line 2c for exported fuel, and line 2d for the LUST tax on fuel used in foreign trade. Line 2d is claimed in addition to line 2b for type of use 9.
Complete lines 3 and 4 for diesel and kerosene
Line 3 is undyed diesel fuel and line 4 is undyed kerosene other than aviation kerosene. If any of the fuel showed visible dye, attach a detailed explanation and check the box on that line.
Complete line 5 for aviation kerosene
Use lines 5a and 5b for commercial aviation and 5c and 5d for other nontaxable use, depending on the tax rate paid. Use line 5e for LUST tax in foreign trade. For tax holiday kerosene, use type of use 15 on line 5c or 5d and attach the statement.
Complete lines 6 and 7
Line 6 covers alternative fuels in gallons or gasoline or diesel gallon equivalents; line 7 covers diesel-water fuel emulsion. For type of use 5 (buses), write "Bus" left of column (a) and enter the credit rate from page 4 of the schedule.
Complete line 8 for exported dyed fuels
Use line 8a for exported dyed diesel fuel and exported gasoline blendstocks taxed at $.001, and line 8b for exported dyed kerosene. Gasoline blendstocks taxed at $.184 are claimed on line 1b.
Total the refund
Add all column (d) amounts and enter the result in the Total refund box at the top of the schedule.
Review and download the completed PDF
Check the period of claim, rates, gallons and CRNs. Download or print the completed PDF from FillingPDF and attach it to Form 8849 as described under How to submit.
How to submit Schedule 1 (Form 8849)
Schedule 1 is filed by mail, attached to Form 8849.
- Attach it to Form 8849. The schedule says to attach it to Form 8849 and not to file it with any other schedule.
- Mail it to the IRS. Use the address under Where To File in the Form 8849 instructions. The schedule itself prints no address.
- Include required explanations. Attach the detailed explanation for dyed diesel fuel or kerosene, and the tax holiday statement for kerosene claims, when they apply (see the required documents).
- Find current information. The form directs you to www.irs.gov/Form8849 for the latest information.
Keep proof of exportation with your records for any exported fuel claim. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Filing Schedule 1 with another schedule; the form says not to file it with any other schedule.
- Making a line 4 claim for kerosene sold from a blocked pump; only registered ultimate vendors may claim those sales, using Schedule 2.
- Filing a second claim for the same quarter; only one claim may be filed for a quarter.
- Filing the claim outside the first quarter following the last quarter included, such as after March 31 for July through December fuel.
- Leaving out the detailed explanation when diesel fuel or kerosene in the claim contained visible evidence of dye.
- Claiming exported fuel without keeping proof of exportation with your records.
- Entering the standard rate for type of use 5 (buses) on lines 6 or 7 instead of writing "Bus" left of column (a) and using the reduced credit rate.
- Claiming tax holiday kerosene without type of use 15 and the attached statement explaining the claim is for the tax holiday relief.
- Writing period-of-claim dates in a format other than MMDDYYYY.
Frequently asked questions
What is Schedule 1 (Form 8849)?
Schedule 1 (Form 8849), Nontaxable Use of Fuels, is the IRS schedule an ultimate purchaser uses to claim a refund for certain taxed fuels used in a nontaxable use or exported. It is attached to Form 8849 and lists the eligible fuels on lines 1 through 8.
Can I file Schedule 1 (Form 8849) by itself?
No. The form says to attach it to Form 8849 and not to file it with any other schedule. You then mail the package to the IRS at the address under Where To File in the Form 8849 instructions.
When do I file a claim on Schedule 1?
File during the first quarter following the last quarter included in the claim. A claim for July through September and October through December, for example, is filed between January 1 and March 31. Only one claim may be filed for a quarter.
What if I cannot meet the quarterly claim requirements?
The schedule refers you to Annual Claims under Additional Information for Schedules 1, 2, and 3 in the Form 8849 instructions. Check them if the minimum claim amount, the filing quarter or the one-claim-per-quarter rule is not met.
What proof do I need for exported fuel?
Keep proof of exportation with your records. It can be a copy of the export bill of lading, an export carrier agent's certificate, a customs officer's certificate of lading from the foreign country or a foreign consignee's statement of receipt.
How do I claim kerosene used in commercial aviation during the 2020 tax holiday?
Kerosene used in commercial aviation from March 28, 2020, through December 31, 2020 is treated as nontaxable. Use type of use 15 on line 5c or 5d, depending on the tax rate paid, and attach a statement that the claim is for the tax holiday relief.
Can I fill out Schedule 1 (Form 8849) online on FillingPDF?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the claim with the IRS; you attach the schedule to Form 8849 and mail it as the IRS instructions direct.
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