JackieCPA Posted February 7, 2019 Report Share Posted February 7, 2019 I have a new client this year who is an active farmer (with a schedule F). He is also on social security benefits. He receives Ag. program payments. Prior preparer put those on the schedule F. My understanding is that if the taxpayer is on social security they do not have to pay self-employment tax on the payments and those payments should not be reported on the schedule F. Am I correct or is the prior preparer correct? Thanks! Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 7, 2019 Report Share Posted February 7, 2019 I thought they went on schedule F. Quote Link to comment Share on other sites More sharing options...
JackieCPA Posted February 7, 2019 Author Report Share Posted February 7, 2019 Yes, but if the taxpayer is drawing on Social Security, they get an exclusion and don't have to pay self-employment tax on the payments. That is from what I understood. I believe it is Section 1402(a)(1) exclusion. Quote Link to comment Share on other sites More sharing options...
Marie Posted February 7, 2019 Report Share Posted February 7, 2019 i thought only CRP payments could be subtracted from SE Quote Link to comment Share on other sites More sharing options...
TaxmannEA Posted February 7, 2019 Report Share Posted February 7, 2019 Agree with Marie. Only CRP payments are excluded from SE tax. All other ag payments are still subject to SE. Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 10, 2019 Report Share Posted February 10, 2019 What if the Farmer is still actively farming? You can collect SS benefits, but still be working the farm. And we can only exclude CRP from SE? If so, report on Sch F for matching, but not taxed, and then move to line 21? (the OLD line 21...;) Rich Quote Link to comment Share on other sites More sharing options...
Marie Posted February 10, 2019 Report Share Posted February 10, 2019 line 1b on the SE form is the subtraction for crp payments. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 16, 2019 Report Share Posted February 16, 2019 On 2/10/2019 at 8:07 AM, Richcpaman said: What if the Farmer is still actively farming? You can collect SS benefits, but still be working the farm. And we can only exclude CRP from SE? If so, report on Sch F for matching, but not taxed, and then move to line 21? (the OLD line 21...;) Rich Marie is correct, CRP payments are included on F but excluded on SE. Other ag payments not excluded from SE. Quote Link to comment Share on other sites More sharing options...
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