Income Averaging Calculations for Farmers and Fishermen Should Take Into Account the Qualified Business Income Deduction

Farmers and fishermen who elect to use Schedule J (Form 1040) to calculate their income tax by averaging all or part of their taxable income from their trades or businesses of farming or fishing should figure the amount that may be entered on Line 2a of Schedule J by taking into account amounts on Form 1040, line 9, Qualified Business Income Deduction, but only to the extent that deduction is attributable to any farming or fishing business.  This item is in addition to the many items already listed in the instructions for Line 2a showing where to find income, gains, losses, and deductions from farming or fishing.