Topic 416 - Farming and Fishing Income

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 1 of the year your return is due. This rule generally applies if farming or fishing income was at least ⅔ of your total gross income in either the current or the preceding tax year. If March 1 falls on a weekend or legal holiday, you have until the next business day to file your return and pay the tax. If you will receive a corrected Form 1095-A (PDF), see IRS Provides Estimated Tax Penalty Relief to Farmers and Fishermen Receiving Corrected Premium Tax Credit Forms.

If you choose not to file by March 1, you can make a single estimated tax payment by January 15 or the next business day if January 15 falls on a weekend or legal holiday, to avoid an estimated tax penalty. If these special rules do not apply, you may have to make quarterly estimated tax payments. For more information on estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.

Report income and expenses from farming on Form 1040, Schedule F (PDF), Profit or Loss From Farming. Additionally, use Form 1040, Schedule SE (PDF), Self-Employment Tax, to figure self-employment tax if your net earnings from farming are $400 or more. For more information, refer to Topic 554 and to Publication 225, Farmer's Tax Guide.

Report income and expenses from fishing on Form 1040, Schedule C (PDF), Profit or Loss From Business (Sole Proprietorship), or Form 1040, Schedule C-EZ (PDF), Net Profit From Business. Use Form 1040, Schedule SE (PDF) to figure self-employment tax if your net earnings from fishing are $400 or more. For general information about the rules applying to individuals, including commercial fishermen who file Schedule C or C-EZ, refer to Publication 334, Tax Guide for Small Business. Also, see Fishing Tax Center on IRS.gov for more information on fishing income, deductions and other tax issues for commercial fishing. If your trade or business is a partnership or corporation, see Publication 541, Partnerships, or Publication 542, Corporations.

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Page Last Reviewed or Updated: March 06, 2015