How do I handle Tolls and Ifta

Nothing. If you don't have the funds for a deposit fot ezpass, you don't have enough to start a company...
Especially in the ne with all the bridges and toll roads. Heck, it should save you enough in the first week to pay for the deposit. We have enough technology now you should not be needing loans from the driver (reimbursement of toll) to run your business.

 

And sadly, tolled miles don't reduce your IFTA tax liability to a given state with toll miles (if that's part of your question related to IFTA)

 

Heck,it's been over $400 the round trip last week from Kenosha, WI to Winchester VA in toll fees...I did not know until I deliberately pulled out my I-pass statement. Other than NY are there any other states that exempt you from fuel tax if using tollways?

 

I've heard in the past Massachusetts allows exemption of toll miles on IFTA forms, but I'm not sure.

 

Tip ask this precisely exact question to a certified practicing accountant and you will get some proper advice.

 

NY does NOT exempt you from fuel tax if you travel on the Thruway. Miles traveled on the Thruway are "free" when it comes to filing your NY HUT which is 0.0546 per mile. In other words, you must pay 0.0546 for all miles traveled in NY, except for those on the toll road. IFTA is separate from NY HUT.

I am not sure how Mass. does it. That would be a good question for one of our north easterners.

What you pay in tolls does not effect your IFTA liability. They are separate items. I agree you should be on EZpass if you are doing a lot of toll roads - a lot easier for book keeping. Also you must be lucky you found a driver willing to use his own money and then ask you for reimbursement afterwards. Most drivers will tell you if you don't have EZpass you had better give them a big enough float to cover the tolls. Plenty will view it as "you can't pay for tolls? When my paycheck coming?" And the way this industry screws people they are correct in their way of thinking.

Edit add:
Get yourself a NY ezpass. The toll discounts on the bridges are significant. Something like $3 per axle or so. It does save you money.

 

Tie it to a credit card and pay the credit card from your bank account
Simple..

Nobody gets a break.