This is my seventh year filing as a farmer with taxable CRP payments entered as agricultural payments on Schedule F. Each year I have deducted my self-employed farm expenses, including our Medicare premiums for my spouse and myself. I also pay SE taxes for myself with my profitable farm. In 2024, I filed for Social Security for the first time and received two months of payments. Schedule F asks if any of the agricultural payments are from CRP and if I receive Social Security retirement benefits. I answer "Yes." Schedule SE shows I no longer pay SE taxes. The SE worksheet also discounts all of the CRP payments as income and it shows the farm as incurring a loss. Turbotax will not allow me to show my Medicare premiums as an self employed expense since on paper, the farm had no profit. At the same time, the CRP payment from Schedule F is shown as income on Schedule 1 and I am being taxed on that agricultural payment. Schedule F shows the farm is making a profit. The farm is operating at a loss according to the Self-Employment form. Is this correct to be both profitable and unprofitable in the same tax year on different forms? I get a larger refund if I can file the Medicare premiums as self employed health insurance expenses. Any ideas on how to handle this?
