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

If you choose not to file by March 1st, you can make a single estimated tax payment by January 15th to avoid an estimated tax penalty. These special rules do not apply if your fishing or farming income is less than 2/3 of your total gross income for both the current and preceding years. In this case, you may have to make quarterly estimated tax payments. See Topic 355 for information on estimated tax payments or Publication 505, Tax Withholding and Estimated Tax.

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, Publication 225, Farmer's Tax Guide, and MSSP, Grain Farmers.

Income and expenses from fishing are reported on either Schedule C or C-EZ Form 1040. Fishermen also may be required to file Schedule SE of Form 1040 to figure self-employment tax if their net earnings from fishing are $400 or more. See Topic 408 for additional information, or Publication 595, Tax Highlights for Commercial Fishermen. To obtain forms or publications you may download them from this site or order them by calling 1-800-829-3676.

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