If you have income from farming or fishing, you may be able to avoid making estimated
tax payments by filing your return and paying your entire tax due on or before March 1st
of the year your return is due. If March 1st falls on a weekend or legal holiday, you have
until the next business day to file and pay tax. This rule generally applies if at least
2/3 of your total gross income was made from farming or fishing in either the year your
return represents, or the preceding year.
If you choose not to use the special rule, you may have to make an estimated tax
payment by January 15th. If your fishing or farming income is less than 2/3 of your total
gross income, or if you choose not to use the special rule, you may have to make quarterly
estimated tax payments. Refer to Topic 355 for information on
estimated tax payments.
Income and expenses from farming are reported on Schedule F (Form 1040). Additionally, self-employment tax
may be required if net earnings from farming are $400 or more. Self-employment tax is
figured on Schedule SE (Form 1040). For additional information, see Topic
554, Self-Employment Tax. For more information on farming, order Publication 225, Farmer's Tax Guide.
Fishermen also may be required to use Schedule SE (Form 1040) to figure self-employment
tax if their net earnings from fishing are $400 or more. Income and expenses are reported
on either Schedule C or C-EZ (Form 1040). Refer to Topic 408 for
additional information or order Publication 595,
Tax Highlights for Commercial Fishermen. To obtain any of the forms or
documentation discussed call 1-800-829-3676, or download them from this web site.
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