Tax Info for Farmers & Fishermen Business Types

Question:   Most of my income is from farming. Are there any special provisions related to estimated tax payments for farmers?

Answer:   If at least 2/3 of your gross income for the current or preceding tax year is from farming and you file your tax return and pay the entire tax due by March 1 of the following year, you generally do not need to make an estimated tax payment. If March 1 falls on a weekend or legal holiday, you have until the next business day to file and pay tax.

If you are a calendar year taxpayer and you do not choose to file your tax return by March 1st:

• You will have only one estimated tax payment that is due by January 15th of the following tax year.
• You will follow the General estimated tax rules except that you substitute 66-2/3% for the “90%” of the tax shown on your current year’s tax return.