What box do I check on "Tell Us About Your Farm or Farm Rental" if the income I have is from the CREP program?

[klinefam]

If I check the box "I received agricultural payments on a 1099-G for my farm rental" the income goes on a Schedule E which I understand is wrong.  How can I get my 1099-G income from the CREP program on Schedule F?

[Cattlerancher · Accepted solution]

Do you mean CRP (Conservation Reserve Program) from the Department of Agriculture? If so, you would check the box "I have income from operating a farm". CRP payments are reported on schedule F. Please note; Your 1099-G is entered on schedule F but you must also review the Ag Program interview to determine the taxable amount and whether self employment (SE) tax applies.

This 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.

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).

[1040TAX]

My Problem is when filling out 1099 Income section the program asks to enter 1099-G income in that section.

However,  I also enter it in  Business Income section .?    So I get tax 2X for same income?

The program will not let me delete this either?

[Irene2805]

Are you actually operating the farm or are you renting it out? 

• If you are running the farm as a business, the income and expenses go on Schedule F.
• If you are renting out your farm the income and expenses go on Schedule  E or Form 4835, depending on whether you are receiving cash or part of the production as payment.

On the screen, Tell us about your Farm or Farm Rental, make sure you check the appropriate boxes, including the box for receiving a 1099-G.  [See Screenshot below.]

Only enter the 1099-G in the Farm section of TurboTax.  Do not enter it in the Wages & Income section.

@1040TAX