Schedule J (Form 1040); Income Averaging; 2025

[user17737940769]

On the Schedule J (1040 Form), 2025 Elected Farm Income Smart Worksheet; C - Ordinary Income; (4), Elected Farm Income, how do I calculate the amount to enter into this box?  Every amount I have attempted to enter is not accepted.  On a red "0." appears in the box.  Please explain in laymen terms.

[AmyC · Accepted solution]

The potential causes of zero:

• If TurboTax does not have your information for years 2022-2024 it can't calculate an average. You need to enter the prior year data.
• Your net farm profit Sch F line 34 is limited by 1040 line 15. If you have no taxable income, you can't average it.
• If you are in Forms mode, switch to step by step and use farm income averaging. The program prefers step by step.
• Check your Sch F - a loss is not eligible

[user17737940769]

Yes, that is what I finally realized yesterday.  I am not sure how I got into the Schedule J in the first place.   The TT explanations were in "pseudo tax speak".  Thank you for your concise explanation!  Yesterday, I attempted to file my IRS 2025 taxes with the error message on Schedule J.  It would not allow acceptance.  Thus, I dug deeper and found what I had been overlooking -- that I had gotten involved with a "voluntary form."  Thus, I immediately "deleted" the form.  With my taxes now being error free, I filed.   Now life is at peace.   I've used Turbo Tax for years ... but now at the point like a few others .... Time to try out the  FREE USA tax program. A friend used it this year and was thrilled with the capacity to import her tax info from 2024 and move onward from TT.

[user17737940769]

Yes, as per my prior message to a fellow responder and now to you,  I sincerely thank you for your response and correct answer ... and which I realized yesterday and was able to just "delete" the Schedule J and move forward and file.  Now life goes on with a sigh of relief.  :>))