The Internal Revenue Service (IRS) has reminded farmers and fishers who declined to make estimated tax payments in January that they must file their 2024 federal income tax return and settle any taxes owed by March 3, 2025. This extension pushes the usual March 1 deadline to the next business day since it coincides with a Saturday this year.
Avoiding Estimated Tax Penalties
Farmers and fishers who meet the criteria of having two-thirds of their gross income derived from farming or fishing in 2023 or 2024 can benefit from the March 3 deadline, provided they did not make an estimated tax payment by January 15, 2025. Those who did make a payment can take advantage of the standard April 15, 2025, filing deadline without facing estimated tax penalties.
The IRS advises taxpayers to utilize electronic payment methods, which offer efficiency and security for filing taxes.
Disaster-Area Tax Extensions
Taxpayers impacted by federally declared disasters automatically receive extended deadlines for filing and payments, with no special paperwork needed to qualify.
Currently, taxpayers in Alabama, Florida, Georgia, North Carolina, and South Carolina, along with parts of Alaska, New Mexico, Tennessee, Virginia, and West Virginia, have until May 1, 2025, to file and pay their taxes. California wildfire victims have an extended deadline of October 15, 2025, and those throughout Kentucky can file until November 3, 2025. No further extensions will be granted beyond these dates.
For additional time past these extended deadlines, taxpayers may seek an extension to October 15, 2025. However, any taxes owed must still be paid by the original extended deadline to avoid penalties. Extension requests must be electronically submitted by April 15, 2025, and paper submissions are required from April 15 to May 1.
Electronic Payment Options for Faster Processing
Taxpayers are encouraged to utilize electronic platforms for same-day payments, checking account balances, and reviewing payment histories. Options such as direct bank account payments streamline the process without necessitating registration.
Required Tax Forms for Farmers and Fishers
Farmers:
- Schedule F (Form 1040): Used to report profit or loss from farming activities.
- Schedule SE (Form 1040): Used to calculate self-employment tax if net earnings exceed $400.
- Additional guidance: Farmer’s Tax Guide and relevant tax topics.
Fishers:
- Schedule C (Form 1040): Used to report profit or loss from fishing ventures.
- Schedule SE (Form 1040): Used to calculate self-employment tax if net earnings exceed $400.
- Additional guidance: Tax Guide for Small Business.
Taxpayers operating as partnerships or corporations should consult guidance documents for specific filing requirements.
For more information on estimated taxes, taxpayers can refer to relevant tax publications and topics.
