Tax Trails - Self-Employment Income |
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You are considered self-employed if you are engaged in a farming activity as other than an employee, and you may be subject to self-employment tax on your net profit.
Income from farming that you report on Schedule F includes, but is not limited to, amounts you receive from cultivating the soil or raising or harvesting any agricultural commodities.
You report your income and expenses from farming and farm-related activities on Form 1040, Schedule F, Profit or Loss From Farming. Income from a farm partnership is shown on Form 1065, Schedule K-1, Partner's Share of Income, Deductions, Credits, Etc.
You figure your self-employment tax on Form 1040, Schedule SE, Self Employment Tax.
If you earned or receive income during the year that is not subject to withholding, or if you do not have enough income tax withheld, you may have to pay estimated tax.
For more information on the tax consequences of farming, refer to Chapter 3, "Farm Income", and Chapter 12, "Self-Employment Tax", of Publication 225, Farmers' Tax Guide. For more information on estimated tax, refer to Chapter 2 of Publication 505, Tax Withholding and Estimated Tax.
Publication 225 and Publication 505 are available for download, or you may request a copy by calling 800-829-3676.
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Page Last Reviewed or Updated: December 03, 2008