I have a Form CCC-1099-G. When I finish putting it in it asks if I own or rent farm land. I own the land but do not farm it because I have it set up in a Reserve Program.

If this 1099-G is reporting a CRP (Conservation Reserve Program) payment, you are required to enter it on schedule F. In TurboTax this section is called Farm Income and Expenses. You will need to upgrade to the online version of Self Employed. I understand you are retired and not actively farming. There is an exclusion just for people like you. After you enter this income on schedule F under Payments from the Government reported on 1099-G you then need to review the Ag Programs section just below it to see if SE tax applies. This income is subject to federal and state income tax. Be sure to include your expenses associated with this income (RE taxes, vehicle mileage, insurance, weed spray, etc.)

Below 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.

IRS Tip; 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).

TurboTax will do this above IRS Tip for you if you go thru the Ag Program interview.

Hello, 

But I don't have a farm nor did I rent one out?

Thank you,

Teresa M. 

Line 1b of Schedule SE should have the CRP payment value, effectively eliminating the Self-employment tax.  How can I get the value entered: I got a 1099-G; I am on Social Security.  Is there a way to enter the value directly?

You must own some sort of land to have a conservation CRP payment.

 

Please review the information provided by "Catterancher" above:

 

Below 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 long­-term 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. 

 

Cost-share payments you receive may qualify for the cost-­sharing exclusion. See Cost-Sharing Exclusion (Improvements), later. CRP payments are reported to you on Form 1099­G.

 

IRS Tip; 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).

 

The above statement allows you to exclude the CRP payment from SE tax if you are already on social security retirement or disability.

 

TurboTax will do this above IRS Tip for you if you go thru the Ag Program interview.

There are two  places to enter the information for the CCC-1099-G form. If I enter the information in both places, it doubles the payment amount listed on the form. Do I just list it under income or farther into Turbo Tax where it asks questions about the farm that received the payment?

If you have a Farm, enter it as farming income.

There are several types of 1099-G Forms. 

Continue in the program to where you can link it to your business income.