Figure 15-1. Estimated Tax for Farmers
Summary: This flowchart is used to determine if a farmer needs to make estimated tax payments.
Start
This is the starting of the flowchart.
Decision (1)
Do you expect to owe $1,000 or more after subtracting your withholding and credits?
| IF Yes Continue To Decision (2) |
| IF No Continue To Process (a) |
Decision (2)
Was at least 66 2/3% of all your gross income in 2005 or 2006 from farming?
| IF Yes Continue To Decision (3) |
| IF No Continue To Process (b) |
Decision (3)
Do you expect your income tax withholding and credits to be at least 66 2/3% of the tax shown on your 2006 return?
| IF Yes Continue To Process (a) |
| IF No Continue To Decision (4) |
Decision (4)
Do you expect your income tax withholding and credits to be at least 100% of the tax shown on your 2005 return?
| IF Yes Continue To Process (a) |
| IF No Continue To Decision (5) |
Decision (5)
Will you file your income tax return and pay the tax in full by March 1?
| IF Yes Continue To Process (a) |
| IF No Continue To Process (c) |
Process (a)
You do not have to pay estimated tax.
Process (b)
Follow the general estimated tax rules.
Process (c)
You must pay your estimated tax (your required annual payment) by January 17.
End
This is the ending of the flowchart.
