Where do I enter 1099-G agriculture plan payments for Schedule E rental properties that are farms?

[Anonymous · Accepted solution]

you don't use schdule e!.  depending on participation you are supposed to use either schedule F or form 4835

here's the differentiation.

The IRS considers "material participation" to be the determining factor as to which farm income tax form you should file. If you're a traditional farmer who raises crops or livestock, you're considered a self-employed business person and you would file using Schedule F, Profit or Loss From Farming.

However, if you merely rent out your land to farmers and do not materially participate in the labor or management of the farming process yourself, you are considered a landowner, not a farmer, according to the IRS. Form 4835 is the way for non-participating farmland owners to report their farm income and expenses.

[rjs]

In the Search box type "government payments" (without the quotes), then click the link that says "Jump to government payments." The first screen asks "Did you have any of these types of income?" The list does not include agricultural program payments, but click Yes anyway. On the next screen check the box for "Other Government Payments reported on Form 1099-G" and click Continue. After that it will be clear what to do.

[johnmeyerlaw]

Thank you -- that is very helpful.

[bb114]

1099-G agriculture payments can be entered under Personal Income and under Farm Income. Do I put it in both places or just farm income?

[ColeenD3]

Do not include it twice. From rjs:

In the Search box type "government payments" (without the quotes), then click the link that says "Jump to government payments." The first screen asks "Did you have any of these types of income?" The list does not include agricultural program payments, but click Yes anyway. On the next screen check the box for "Other Government Payments reported on Form 1099-G" and click Continue. After that it will be clear what to do.