Shedule J

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If I farm and have three other businesses can I file a schedule "J" on the farm only

RobertB4444Answer

Alumni - Intuit

When I deleted the form J, my taxable amount as provided by the program, did not return to the previous amount. How do I delete the "J" and get Turbo tax to recognize it?

Entering the form J into the system probably altered your schedule F and the calculation worksheets for the other forms associated with it. Add the form J back into the return and then enter zeros into all the slots on the form that you entered numbers into. That should fix the problem.

@mdcowan

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Monikak11

Level 6

Yes, Schedule J is intended for income from farming or fishing. Use Schedule J (Form 1040) to elect to figure your 2022 income tax by averaging, over the previous 3 years (base years), all or part of your 2022 taxable income from your trade or business of farming or fishing. This election may give you a lower tax if your 2022 income from farming or fishing is high and your taxable income for 1 or more of the 3 prior years was low.

You're not required to use all of your taxable farm and fishing income from the current year for income averaging, and it may be better to use only a portion. Whatever portion of your income you include, it’s called elected farm income on Schedule J, and it can include gain or loss from the sale of property and assets used in your business. It cannot exceed the taxable income reported on your Form 1040. Schedule J and its instructions guide you through the calculation of tax on your current year elected farm income as well as the three base years to calculate your averaged income.

To enter the needed information in TurboTax Online, open your return, then:

Select Other Tax Situations
Select Business Taxes and Deductions
Click Start next to Farm or fishing income averaging

Please see the IRS Instructions for Schedule J and this TurboTax article for more information.

mdcowanAuthor

Level 2

Thank you for your prompt reply to my question about schedule J. One more question please.

Do I use the farm income which was a loss? Or do I use my total of all businesses income each year? In other words the total taxable income from each year as total adjusted gross income on 1040? Thanks again, MIKE

RobertB4444

Alumni - Intuit

You would just use the farm income and if it was a loss this year then you would not use schedule J this year. You will use schedule J in a year when you have a profit in order to reduce the amount that you will have to pay taxes on. So skip the schedule J for this year.

@mdcowan

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