Federal Tax Types
Comprehensive overview of all federal excise tax categories
All Tax Categories
Environmental Tax
Imposed on businesses or individuals for activities that harm the environment, such as carbon emissions and pollution.
Key Details:
- Applies to specific environmentally harmful activities
- Rates vary by type of environmental impact
- Includes taxes on ozone-depleting chemicals
Communications & Air Transportation Taxes
Applied to communication services (e.g., phone services) and air travel tickets or transportation costs.
Key Details:
- 7.5% tax on domestic air transportation
- 6.25% tax on international air travel
- 3% tax on communications services
Fuel Taxes
Excise taxes on the sale of gasoline, diesel, and other fuels, often used to fund transportation infrastructure projects.
Key Details:
- Federal gasoline tax: 18.4¢ per gallon
- Diesel fuel tax: 24.4¢ per gallon
- Tax rates adjusted periodically for inflation
Retail Tax
Collected on the sale of goods and services at the retail level, usually calculated as a percentage of the sale price.
Key Details:
- Varies by state and locality
- Typically ranges from 4% to 10%
- Some items may be exempt (e.g., groceries)
Ship Passenger Tax
Tax imposed on passenger transportation by ship, commonly applied to cruise and ferry services.
Key Details:
- $3 per passenger for Alaska cruises
- Exemptions for certain ferry services
- Funds go to customs and border protection
Foreign Insurance Tax
Taxes on insurance policies issued by foreign insurers for risks located within the United States.
Key Details:
- 1% federal excise tax on premiums
- Applies to reinsurance as well
- Certain exemptions for marine insurance
Manufacturers Taxes
Excise taxes on the sale of certain manufactured goods like heavy trucks and firearms.
Key Details:
- 12% tax on heavy trucks and trailers
- 10-11% tax on firearms and ammunition
- Included in retail price to consumer
Part II Taxes
Covers taxes on fishing gear, archery products, indoor tanning, and fuel for inland waterways.
Key Details:
- 10% tax on fishing equipment
- 11% tax on bows and arrows
- 10% tax on indoor tanning services
Other Excise Tax
Covers miscellaneous excise taxes applied to specific financial instruments and various transactions.
Key Details:
- 0.1% tax on certain stock trades
- Taxes on wagering and gambling
- Special fuels tax for aviation
Claims (SCHEDULE-C)
A form used to claim refunds for excise taxes paid on certain goods or services.
Key Details:
- Used for fuel tax credits
- Requires detailed documentation
- Separate schedules for different claims
Form 720 X
Used to correct errors on a previously filed Form 720 (Quarterly Federal Excise Tax Return).
Key Details:
- Must file within 3 years of original return
- Requires explanation of changes
- Can result in refunds or additional payments
Form 8849
Used to claim refunds for certain excise taxes paid, such as overpayment of fuel tax.
Key Details:
- Used by registered fuel taxpayers
- Multiple schedules for different claims
- Requires detailed mileage records