Figure 15-1. Estimated Tax for Farmers

Summary: This flowchart is used to determine if a farmer needs to make estimated tax payments.

Start

This is the starting of the flowchart.

Decision (1)

Do you expect to owe $1,000 or more after subtracting your withholding and credits?

  • IF Yes Continue To Decision (2)
  • IF No Continue To Process (a)

    • Decision (2)

    Was at least 66 2/3% of all your gross income in 2005 or 2006 from farming?

  • IF Yes Continue To Decision (3)
  • IF No Continue To Process (b)

    • Decision (3)

    Do you expect your income tax withholding and credits to be at least 66 2/3% of the tax shown on your 2006 return?

  • IF Yes Continue To Process (a)
  • IF No Continue To Decision (4)

    • Decision (4)

    Do you expect your income tax withholding and credits to be at least 100% of the tax shown on your 2005 return?

  • IF Yes Continue To Process (a)
  • IF No Continue To Decision (5)

    • Decision (5)

    Will you file your income tax return and pay the tax in full by March 1?

  • IF Yes Continue To Process (a)
  • IF No Continue To Process (c)

    • Process (a)

    You do not have to pay estimated tax.

  • Continue To End

    • Process (b)

    Follow the general estimated tax rules.

  • Continue To End

    • Process (c)

    You must pay your estimated tax (your required annual payment) by January 17.

  • Continue To End

    • End

    This is the ending of the flowchart.

    Close Window