Figure 15-1. Estimated Tax for Farmers. Summary: This flowchart is used to determine if a farmer needs to make estimated tax payments.Start. This is the starting of the flowchart.Decision (1). Do you expect to owe $1,000 or more after subtracting your withholding and credits?
| IF Yes Continue To Decision (2) |
| IF No Continue To Process (a) |
Decision (2). Was at least 66 2/3% of all your gross income in 2005 or 2006 from farming?
| IF Yes Continue To Decision (3) |
| IF No Continue To Process (b) |
Decision (3). Do you expect your income tax withholding and credits to be at least 66 2/3% of the tax shown on your 2006 return?
| IF Yes Continue To Process (a) |
| IF No Continue To Decision (4) |
Decision (4). Do you expect your income tax withholding and credits to be at least 100% of the tax shown on your 2005 return?
| IF Yes Continue To Process (a) |
| IF No Continue To Decision (5) |
Decision (5). Will you file your income tax return and pay the tax in full by March 1?
| IF Yes Continue To Process (a) |
| IF No Continue To Process (c) |
Process (a). You do not have to pay estimated tax.
| Continue To End |
Process (b). Follow the general estimated tax rules.
| Continue To End |
Process (c). You must pay your estimated tax (your required annual payment) by January 17.
| Continue To End |
End. This is the ending of the flowchart.