If you have substantial income from farming or fishing, you may be able to avoid making any 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 current or the preceding year.

If you choose not to file by March 1st, you can make a single estimated tax payment by January 15th to avoid an estimated tax penalty. These special rules do not apply if your fishing or farming income is less than 2/3 of your total gross income for both the current and preceding years. In the case, you may have to make quarterly estimated tax payments. Select Topic 355 for information on estimated tax payments. For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax.

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, select Topic 554, Self-Employment Tax. For more information on farming, see Publication 225, Farmer's Tax Guide.

Fishermen also may be required to use Schedule SE of 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 of Form 1040. Select Topic 408 for additional information or see Publication 595, Tax Highlights for Commercial Fishermen. Publications can be downloaded from this site, or ordered by calling 1-800-829-3676.

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