The Internal Revenue Service is reminding those with income from a farming or fishing business can avoid making any estimated tax payments by filing and paying their entire tax due on or before March 1.
This rule generally applies if farming or fishing income was at least two-thirds of the taxpayer’s total gross income in either the current or the preceding tax year. Those who choose not to file by March 1 should have made an estimated tax payment by Jan. 15 to avoid an estimated tax penalty, according to a news release. For more information on estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.
Those in the farming business report income and expenses on Schedule F (Form 1040), Profit or Loss From Farming. They also use Schedule SE (Form 1040), Self-Employment Tax to figure self-employment tax if their net earnings from farming are $400 or more, according to an IRS ews release. For more information refer to Topic No. 554, Publication 225, Farmer’s Tax Guide and Agriculture Tax Center.
Those in the fishing business report income and expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship). They also use Schedule SE (Form 1040) to figure self-employment tax if their net earnings from fishing are $400 or more, For general information about the rules applying to individuals, including commercial fishermen who file Schedule C, refer to Publication 334, Tax Guide for Small Business.
Those whose trade or business is a partnership or corporation see Publication 541, Partnerships or Publication 542, Corporations.
IRS Direct Pay is Safe, Fast and Free
IRS Direct Pay is a free online service where people can make same day payments or schedule them up to 365 days in advance directly from a checking or savings account. There are no IRS fees and no pre-registration. IRS Direct Pay is available seven days a week, and users receive instant confirmation after they submit a payment or they can opt-in to receive email notifications, the news release added,
IRS Direct Pay cannot be used to pay the federal highway use tax, payroll taxes or other business taxes. Anyone wishing to pay these business taxes electronically can enroll in the Electronic Federal Tax Payment System (EFTPS). EFTPS is also a free service.
For more information about these and other payment options visit IRS.gov/payments.
Tax Topic 416, Farming and Fishing Income
Publication 5034 (EN-SP), Need to Make a Tax Payment?