If you have income from your farming or fishing business, 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.
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 March 1st falls on a weekend or legal holiday, you have until the next
business day to file and pay tax.
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. If these special
rules do not apply, you may have to make quarterly estimated tax payments.
Refer to Topic 355 for information on estimated tax payments. For
more information on estimated tax, refer to 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, refer to Topic 554, Self–Employment
Tax. For more information on farming, refer to Publication 225, Farmer's
Income and expenses from fishing are reported on either Schedules C or
C-EZ Form 1040. Fishermen also may be required to file Schedule SE Form
1040 to figure self–employment tax if their net earnings from fishing
are $400 or more. For additional information refer to Topic 408 ,
or to Publication 595, Tax Highlights for Commercial Fishermen.