If you have income from farming or fishing, you may be able to avoid making estimated tax payments by filing your return and paying your entire tax due on or before March 1st of the year your return is due. If March 1st falls on a weekend or legal holiday, you have until the next business day to file and pay tax. This rule generally applies if at least 2/3 of your total gross income was made from farming or fishing in either the year your return represents, or the preceding year.

If you choose not to use the special rule, you may have to make an estimated tax payment by January 15th. If your fishing or farming income is less than 2/3 of your total gross income, or if you choose not to use the special rule, you may have to make quarterly estimated tax payments. Refer to Topic 355 for information on estimated tax payments.

Income and expenses from farming are reported on Schedule F (Form 1040). Additionally, self-employment tax may be required if net earnings from farming are $400 or more. Self-employment tax is figured on Schedule SE (Form 1040). For additional information, see Topic 554, Self-Employment Tax. For more information on farming, order Publication 225, Farmer's Tax Guide.

Fishermen also may be required to use Schedule SE (Form 1040) to figure self-employment tax if their net earnings from fishing are $400 or more. Income and expenses are reported on either Schedule C or C-EZ (Form 1040). Refer to Topic 408 for additional information or order Publication 595, Tax Highlights for Commercial Fishermen. To obtain any of the forms or documentation discussed call 1-800-829-3676, or download them from this web site.

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