Farmers & Fishermen
Question: Are there any special provisions related to estimated tax payments for farmers and fishermen?
Calendar year farmers and fishermen. If you are a calendar year taxpayer and at least two-thirds of your gross income for 2015 or 2016 is from farming or fishing, you have only one payment due date for your 2016 estimated tax, January 17, 2017. The due dates for the first three payment periods do not apply to you. See Farmers and Fishermen in Publication 505, Tax Withholding and Estimated Tax.
You can figure the penalty for failure to pay estimated taxes, which includes failing to pay enough estimated taxes, for 2016 on the difference between the amount of 2016 withholding plus estimated tax you paid by January 17, 2017, and the smaller of:
- 66 ⅔% (rather than 90%) of your 2016 tax, or
- 100% of the tax shown on your 2015 return.
You will not owe an estimated tax penalty if the tax shown on your 2016 return, minus your 2016 withholding, is less than $1,000.
If you are a calendar year taxpayer and you file your 2016 Form 1040 by March 1, 2017, you do not need to make an estimated tax payment if you pay all the tax you owe at that time.
Fiscal year farmers and fishermen. If you are a farmer or fisherman, but your tax year does not start on January 1, you can either:
- Pay all your estimated tax by the 15th day after the end of your tax year, or
- File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year.
Note: If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday.
Category: Estimated Tax
Subcategory: Farmers & Fishermen