Farming income is still reported as normal on Form 1040; it’s tax that’s calculated differently. There's no red flag related to income.
Using Schedule J, Income Averaging for Farmers and Fishermen doesn’t affect what’s on line 15 of Form 1040. And what’s included on Line 2a of Schedule J wouldn’t likely be the same amount as what’s on Line 15 of Form 1040.
A farmer can qualify to calculate a lower tax by using income averaging when farm income is high in the current year, but was relatively low in any of the three prior years.
Please see the TurboTax article What Is Schedule J: Income Averaging for Farmers and Fishermen - TurboTax Tax Tips & Videos for more information.
[Edited 3/15/2022 | 9:07 am PST]
