March 1 is file your taxes time

Farmers are unique.  The IRS allows them to pay their income taxes later than almost anybody else.john-deere-farm-tractor-4wd

Noramally all returns are due on April 15 of each year and taxpayers need to pay in their taxes by either having enough withholding taken out of their wages or paying 4 equal quarterly estimated tax  payments in order to not have a penalty charged.

However, farmers can either make one quarterly payment on January 15 (for the previous year) equal to the lower of 90% of their current estimated tax for the year or 100% of the prior year’s tax.  Or they can pay all of their tax by March 1 and not have to pay in any estimated taxes.  These options can save the farmer up to 5-10% on their tax bill due to the time value of money in being able to delay their tax payments for almost a year.

Information on how to qualify for this favorable treatment is at the IRS web-site.  Remember, in order to be called a farmer, at least two thirds of your gross income needs to be from farming

  • Principal
  • CliftonLarsonAllen
  • Yakima, Washington
  • 509-823-2920

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).

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