Get your taxes done using TurboTax

Do you mean CRP (Conservation Reserve Program) from the Department of Agriculture? If so, you would check the box "I have income from operating a farm". CRP payments are reported on schedule F. Please note; Your 1099-G is entered on schedule F but you must also review the Ag Program interview to determine the taxable amount and whether self employment (SE) tax applies.

This is from IRS publication 225, page 11;

Conservation Reserve Program (CRP)

Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a long­term contract with the USDA, agreeing to convert to a less intensive use of that cropland. You must include the annual rental payments and any one­time incentive payment you receive under the program on Schedule F, lines 4a and 4b. Cost­share payments you receive may qualify for the cost­sharing exclusion. See Cost-Sharing Exclusion (Improvements), later. CRP payments are reported to you on Form 1099­G.

Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. See the instructions for Schedule SE (Form 1040).

View solution in original post