Tax pros and taxpayers take note – farmers and fisherman face March 1 tax deadline
Looming deadline for many farmers and fisherman
Businesses with income from farming or fishing that have not paid all of their 2022 tax year estimated taxes by January 17 must file their tax returns and pay their entire tax due on or before Wednesday, March 1, 2023.
Only those taxpayers that have paid their estimated tax payments by Jan. 17 can file by the regular April 18 deadline and avoid estimated tax penalties. This special rule generally applies when income from farming or fishing makes up at least 2/3 of the total gross income in either the current or the preceding tax year.
Special rules for disaster areas
Disaster-area taxpayers, including farmers and fishers, have more time to file and pay. Currently, taxpayers in most of California and parts of Alabama and Georgia, have until Oct.16, 2023, to file their 2022 return and pay any tax due. This extension is automatic; tax pros and taxpayers don’t need to file any paperwork or call the IRS to get it.
Forms and publications to use
- Use schedule F (form 1040), profit or loss from farming to report income and expenses.
- Use schedule SE (form 1040), self-employment tax to figure self-employment tax if net earnings from farming are $400 or more.
- See topic no. 554 - self-employment tax, publication 225 - farmer's tax guide, and agriculture tax center for more information.
- Use schedule C (form 1040), profit or loss from business (sole proprietorship) to report income and expenses.
- Use schedule SE (form 1040), self-employment tax to figure self-employment tax if net earnings from fishing are $400 or more.
- See publication 334, tax guide for small business for commercial fishers who file schedule C.
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