Introduction to Agricultural Federal Tax Issues
Essentially all farmers, ranchers, and other agricultural producers must file a federal tax return and pay federal income and/or self-employment taxes on their net profit.
New Farmer Tax Information
On this page, you will find some useful topics for beginning farmers. The linked fact sheets are a good place to start to get basic information you may need as you consider your tax situation.
These topics are for educational purposes only. We encourage you to seek the advice of a tax or legal professional.
Tax Topics:
Employment of Family Members
The use of family labor in the farm or ranch operation can pose a number of challenges for farm managers as they try to sort through the vast quantity of regulations.
How to Choose a Tax Professional
Choosing the right accountant or tax return preparer can be a crucial decision for farmers, ranchers and forest landowners. Part of this important decision is based on personality, but there are some key questions that should be asked of potential (and ma...
Farm Losses versus Hobby Losses: How to Avoid Adverse Tax Consequences
The hobby loss rules which determine whether a venture is a business or a hobby, is a frequently misunderstood area of tax law that causes producers who are experiencing difficult economic times to worry, perhaps unnecessarily, that the venture will be vi...
Farm, Farming and Who’s a Farmer for Tax Purposes
Meeting the qualifications of farming and being a farmer under the Internal Revenue Code (IRC) allows for special benefits; however, not all agricultural producers meet these qualifications even if they are producing agricultural products, which is why it...
Form 1099 Information Returns
Form 1099 is used to report various forms of income other than wages, salaries, and tips to the Internal Revenue Service (IRS) and to the recipient of the payment. Agricultural producers may both receive Form 1099 information returns and be required to is...
Depreciation: An Introduction
This article will introduce depreciation and depreciation calculations. Additional articles are available at ruraltax.org that provide more in-depth information regarding the items listed above.
Filings Dates and Estimated Tax Payments
Knowing the deadline to file your federal income tax return is important, as late filing can generate penalties. In addition, taxpayers should know when tax payments are due because payments can be a major expense to consider in cash flow planning.
Self-Employment Tax
Most taxpayers working for an employer have FICA and Medicare withheld from their wages. The amount withheld is matched by their employer. Consequently, they will receive retirement and medical benefits when they reach retirement age.
Tax Planning for Farmers
This article provides an overview of tax management and planning concepts, plus where to find additional information.
Tools:
Tax Estimator
This decision tool is to be used to estimate your tax liability. It is for informational and educational purposes and should not considered tax or legal advice. You may need to work with your tax professional to determine the correct information to be entered in the Tax Estimator Tool.
Webinars:
Other Resources:
This information is intended for educational purposes only. You are encouraged to seek the advice of your tax or legal advisor, or other authoritative sources, regarding the application of these general tax principles to your individual circumstances. Pursuant to Treasury Department (IRS) Circular 230 Regulations, any federal tax advice contained here is not intended or written to be used, and may not be used, for the purpose of avoiding tax-related penalties or promoting, marketing or recommending to another party any tax-related matters addressed herein.