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 1, of the year your return is due. If March 1 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 from farming or fishing in either the year your return is for or the year before that one.

If you choose not to use the special rule, you may have to make an estimated tax payment by January 15. 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 Publication 505, Tax Withholding and Estimated Tax, 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, refer to 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 (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 see Publication 595, Tax Highlights for Commercial Fisherman.

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