1099-G

[Dan]

What do you to do when you receive two 1099-G's in regard to agriculture payments

One 1099-G is sent in the wife's name and the other 1099-G is in the husband's name?

The husband is a self-employed farmer and the wife is a homemaker.

I understand that only one person's name must be listed on the same Schedule F. If I enter the names in the 1099-G's in the ATX program as show on the 1099-G's, I must have both names on schedule F for the total agriculture payment to enter on line 6a of schedule F. And what I see also is two schedule SE forms for self-employment tax.

The only way I can get my program to work with the husband's name only on schedule F and only one schedule SE is to enter filer instead of wife on the 1099-G.

How do you handle this problem when you receive two different person's 1099-G for agriculture program payments? The husband is a self-employed farmer and the wife is a homemaker.

Thanks for your early reply.

[lydia33]

Evidently they told USDA that they were a partnership or both ran the farm. You don't just get that money without paperwork to the government. Does she have true farm rental? If so it goes on I can't remember the number, 8???, it flows to the page 2 SchE.

[Dan]

Are you saying the wife's 1099-G for agriculture program payment should go on form 4835 "Farm Rental Income and Expenses?" Where can I read about this problem in the instructions? Thanks for replying.

[Dan]

The wife has some farm land in her name and she is getting paid an amount each year for the CRP that was planted there. The government has a program that you can put CRP on the land instead of farming it. That is the reason she received a 1099-G.

Therefore, how would you report this income? What form would you use? KC, what is your answer to this question? Thanks for responding.

[DANRVAN]

That’s a million dollar question Dan. The IRS is taking the position that all CRP income is subject to SE Tax, see CCA 200325002 and Notice 2006-108, 2006-51 IRB.

The IRS no longer says in Pub 225 that inactive farmers and landlord can report CRP income on form 4835. There is supposed to be a provision in the Farm Bill that retired farmers are exempt from SE tax in regards to CRP. Last I heard, congress is still wrestling with the current farm bill.

[Chrisbry]

AG Payments are now issued 1/2 to husband and 1/2 to wife if they are joint owners of the land.

I entered all of the spouse's Ag Payments on a Schedule F and then nomineed them to the husband's schedule F, OTHER INCOME. Spouse is not an active participant in the farming operations. Rare, but it's true.

[Dan]

Danrvan and Chrisbry, thanks for your response.

Chrisbry, do you mean you have two schedule F's open and then later delete one of them? If you was going to put it on the husband's schedule F anyway, why not do it at the beginning? Am I understanding your great advice here?

Why put it as other income on schedule F?

What I have done so far on this particular return is just not put a check mark in the box for spouse on the 1099-G

I look forward for other responses to this question if you deal with this question of the husband and wife both receiving 1099-G's and how to report them when the husband is a self-employed farmer and the wife is a homemaker. Whether they should go on a schedule F or Form 4835.

What about a son who lives in another state and receives a 1099-G in regard to CRP? What form is he to use if he is a school teacher?

Thanks for your response.

[kcjenkins]

The wife has some farm land in her name and she is getting paid an amount each year for the CRP that was planted there. The government has a program that you can put CRP on the land instead of farming it. That is the reason she received a 1099-G.

Therefore, how would you report this income? What form would you use? KC, what is your answer to this question? Thanks for responding.

OK, here's the straight deal on this one. If she owns the land, and she is getting CRP payments, she HAS TO FILE A SCH F, IN HER OWN NAME, AND PAY SE TAX ON THE INCOME. That is the rule, for ALL CRP payments. There is a Rev Ruling on this, don't remember the number, but you can find it if you look. There is a bill in Congress now to change this, but it is going nowhere while the pols play their political games.

[Chrisbry]

Danrvan and Chrisbry, thanks for your response.

Chrisbry, do you mean you have two schedule F's open and then later delete one of them? If you was going to put it on the husband's schedule F anyway, why not do it at the beginning? Am I understanding your great advice here?

Why put it as other income on schedule F?

No, I did not delete the wife's Schedule F. I showed the 1099's on Line 6 and nomineed it to Husband's Sch F on line 34 (leaving ZERO on wife's). Then I showed it as OTHER INCOME on Husband's Sch F as Nomineed income from Wife's SS #.

Perhaps not the right way to do it, but it's done. Both deposits go into the farm account which the wife has no signature or access to {nada} and then the amounts are applied against the Farm Operating Loan. If the IRS was to insist that this income has to be put to the SE in the wife's name, I'm pretty sure I could come up with enough RE taxes, interest, and other farm expenses to create a loss on her Schedule F {husband showed a profit}.