CRP Payments

[daisycow72]

I inherited 3 fields..  

Field #1 is in CRP.  No real expenses to speak of

Field 2 & 3 were farmed by a neighbor and i paid 1/3 off the expense and got 1/3 of the income.  I did no work.  I have no farm tax id no or farm name.  

I received a CRP payment but received no 1099 G

What do I do with all that?

[DianeW777]

The farm name is your name and the farm ID is your social security number (SSN). No special name or number are required. Report the income and expenses as normal on one Schedule F for all of the activities. See the information below for the CRP income as well.

These  conservation reserve program payments (CRPs) are taxable and depending on your specific circumstances may have to be reported on Schedule F, even though you are not operating a farm at this time. See the information here and at the IRS link.

• Unless the taxpayer is receiving Social Security retirement or disability benefits, CRP “annual rental payments” are includible in net income from self-employment subject to self-employment tax. Note: Payments that are for the permanent retirement of cropland base and allotment history are not includible in net income from self-employment subject to self-employment tax because they are for the sale of section 1231 property or a capital asset. 
  • IRS CRP Payments and Self Employment Tax

If you are receiving social security or disability you can report the income as follows (assumes it is not permanent retirement of the property). 

Other Miscellaneous Income:

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount

If you are not receiving social security or disability at this time report it on Schedule F using the link below.

• What is Schedule F: Profit or Loss from Farming
  1. Select Wages and Income > Scroll to Rentals, Royalties, and Farm > Select Farm Income and Farm Rental
  2. Select 'I received agricultural payments on a 1099-MISC or 1099-G for my farm rental' as the income type
  3. Continue to enter your 1099-G completing the appropriate boxes for your income
     • If the amount is greater than $400 there will be self employment tax calculated and included on your tax return.

Please update if you have additional questions and we will help.

@daisycow72