Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1040NR, 1041, 1065, or 1065-B.

Your farming activity may subject you to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments for more information.

Pub. 225 has more information and examples to help you complete your farm tax return. It also lists important dates that apply to farmers.

For the latest information about Schedule F (Form 1040), including any developments after these instructions were released, go to www.irs.gov/form1040.

We added new lines to implement reporting of farm income received via merchant card (credit and debit cards) and third party network payments. These amounts are reported as specified income on Schedule F (Form 1040). However, for 2011, the IRS has deferred the requirement to report these amounts. Therefore, enter zero on lines 1a, 2a, 7a, 8a, 37a, 42a, and 43a, and report farm income on lines 1b, 2b, 7b, 8b, 37b, 42b, and 43b. See the instructions for Part I.

The standard mileage rate for business use of your vehicle increased to 51 cents per mile for miles driven before July 1, 2011, and increased to 55.5 cents per mile for miles driven after June 30, 2011. See the instructions for line 10.

New lines F and G address your required filing of Forms 1099 in 2011. See the line F instructions for details and see the General Instructions for Certain Information Returns to determine whether you are required to file any Forms 1099.

This tax has been extended through September 30, 2012. See Form 2290 and its instructions for the extended filing deadline for 2011.