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jasonalun
Returning Member

Income from Field Haying

I live in a rural area, and I have a lot of acreage that is just used for hay. I don't hay (takes a lot of equipment and time) but a neighbor farmer offered to hay my field for me. He paid me a nominal fee - $10 per acre which works out to $300 for me. I really don't need the money but he feels compelled to pay me. However, doing my taxes it looks like the only way for me to declare this would be to file it as income from "rental property." This is a big hassle (and requires the more expensive TurboTax Deluxe) and I DO NOT WANT to bother at all! My question is: can I give the money to charity and get out of declaring it on my taxes, or return it to him (he paid me in 2020 and it's the next tax year already obviously) and call it even? Or is there some other way I can declare this so it isn't such a blasted hassle? I tried "other income" but TurboTax seems to make clear that isn't for money received as payment for use of land or property.  I want to be honest and above board but absolutely don't want to get into the business of "renting" my property. BTW, there is no rental agreement or paperwork, it's just a handshake type of thing. Thanks!

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1 Reply
ToddL99
Expert Alumni

Income from Field Haying

Report this income as "Other Reportable income" - the IRS just wants you to report it, and it does not need special handling or interviews like rental property would.  Also, it won't make any difference in your tax calculation if it goes in as "Other income" (line 8 of Schedule 1 and Form 1040).

 

  • Go to Less Common Income, Miscellaneous Income and Other reportable income. Enter "Lawsuit settlement" in the Search Box and Select "Jump to lawsuit settlement" "to get to this screen ("Lawsuit settlement" is just an effective search term to get to this interview screen) 

  • Continue to the screen "Other Taxable Income". Enter the description as "Hay sale" and the amount  ($300). "  These are NOT wages.   
     

The income will be entered on line 8 of Schedule 1 and Form 1040.

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