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Level 2
March 14, 2026
Question

On Form 4835, why does the Taxable Agricultural payments have to be less than or equal to zero?

  • March 14, 2026
  • 1 reply
  • 25 views
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1 reply

Level 12
March 15, 2026

On Form 4825, taxable agricultural payments do not have to be less than or equal to zero.  There are some agricultural payments that are taxable and some are not.  Some of the most common taxable programs are the Conservation Reserve Program (CRP), Environmental Quality Incentives Program (EQIP), disaster payments, and Market Facilitation Program payments.  There are some payments that are not taxable are payments for cost-sharing, like for qualified soil and water conservation expenses.

 

These payments are reported on  Form 1099-G, "Certain Government Payments, if TurboTax shows that your payments are not taxable, if could be how you entered your payment information.   To go back and review your entries:

 

  1. Go to Income and Expenses
  2. Other Common Income
  3. Other 1099-G Income.
  4. Select "Yes" to "Did you receive any of these payments on Form 1099-G?"
  5. Enter the payment amount in Box 6.
  6. Review to see what type of payment you selected