skip navigation

Search Help
Navigation Help

Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website
Instructions for Schedule F (Form 1040)
taxmap/instr/i1040sf-006.htm#TXMP52f7e89c

Line F(p3)

rule
If you made any payments in 2011 that would require you to file any Forms 1099, check the Yes box. Otherwise, check the No box. See the General Instructions for Certain Information Returns if you are unsure whether you are required to file any Forms 1099. Also see the separate specific instructions for each Form 1099.
taxtip
Generally, you must file Form 1099-MISC if you paid at least $600 in rents, services, prizes, medical and health care payments, and other income payments. The Guide to Information Returns on page 15 of the General Instructions for Certain Information Returns has more information, including the due dates for the various information returns.
taxmap/instr/i1040sf-006.htm#TXMP5dff909e

Part I. Farm Income—Cash Method(p3)

rule
In Part I, show income received for items listed on lines 1 through 8b. In most cases, include both the cash actually or constructively received and the fair market value of goods or other property received for these items. Income is constructively received when it is credited to your account or set aside for you to use. However, direct payments or counter-cyclical payments received under the Food, Conservation, and Energy Act of 2008 are required to be included in income only in the year of actual receipt.
If you ran the farm yourself and received rents based on crop shares or farm production, report these rents as income on line 2a or 2b, depending on the method of payment. See Form 1099-K later.
taxmap/instr/i1040sf-006.htm#TXMP3013d85a
Sales of livestock because of weather-related conditions.(p3)
rule
If you sold livestock because of drought, flood, or other weather-related conditions, you can elect to report the income from the sale in the year after the year of sale if all of the following apply.
taxmap/instr/i1040sf-006.htm#TXMP4ddbcce5
Chapter 11 bankruptcy.(p3)
rule
If you were a debtor in a chapter 11 bankruptcy case during 2011, see Chapter 11 Bankruptcy Cases under Income in the instructions for Form 1040 and the instructions for Schedule SE (Form 1040).
taxmap/instr/i1040sf-006.htm#TXMP5eb945e6
Forms 1099 or CCC-1099-G.(p3)
rule
If you received Forms 1099 or CCC-1099-G showing amounts paid to you, first determine if the amounts are to be included with farm income. Then use the following chart to determine where to report the income on Schedule F (Form 1040). Include the Form 1099 or CCC-1099-G amounts in the total amount reported on that line.
Form Where to
report
 
1099-PATRLine 3a 
1099-ALine 5b 
1099-MISC for crop insurance Line 6a 
1099-G or CCC-1099-G  
  • for disaster payments
Line 6a 
  • for other agricultural
      program payments
Line 4a 
taxmap/instr/i1040sf-006.htm#TXMP4ddfa965
Form 1099-K.(p3)
rule
If you receive merchant card or third party network payments in 2011, you should receive a Form 1099-K showing those payments. Box 1 of Form 1099-K shows the amount of the payments. Merchant cards include, but are not limited to, Visa and MasterCard. Third party networks include, but are not limited to, Paypal and Google Checkout.
In some cases, you may not receive Forms 1099-K for merchant card or third party network payments that you need to include as income.
For 2011, you are not required to report income received via merchant card or third party network payers, so enter zero on the lines for specified income (lines 1a, 2a, 7a, and 8a). Report all your farming income, regardless of how it was received, on lines 1b, 2b, 7b, or 8b.
taxmap/instr/i1040sf-006.htm#TXMP46d63241
Form 1099-MISC.(p3)
rule
You may receive Form 1099-MISC for other types of income. In this case, report it on whichever line best describes the income, but do not include it on the line for merchant card or third party network payments. For example, if you receive a Form 1099-MISC for custom farming work, include this amount on line 7b.
taxmap/instr/i1040sf-006.htm#TXMP7e287e9b

Line 1b(p3)

rule
Enter income you receive from sales of livestock and other items you bought for resale on line 1b.
taxmap/instr/i1040sf-006.htm#TXMP060266b7

Line 2b(p3)

rule
Enter income you receive from sales of livestock, produce, grains and other products you raised on line 2b.
taxmap/instr/i1040sf-006.htm#TXMP3b61aa08

Lines 3a and 3b(p4)

rule
If you received distributions from a cooperative in 2011, you should receive a Form 1099-PATR. On line 3a, show your total distributions from cooperatives. This includes patronage dividends, nonpatronage distributions, per-unit retain allocations, and redemptions of nonqualified written notices of allocation and per-unit retain certificates.
Show patronage dividends received in cash and the dollar amount of qualified written notices of allocation. If you received property as patronage dividends, report the fair market value of the property as income. Include cash advances received from a marketing cooperative. If you received per-unit retains in cash, show the amount of cash. If you received qualified per-unit retain certificates, show the stated dollar amount of the certificates.
Do not include as income on line 3b patronage dividends from buying personal or family items, capital assets, or depreciable assets. Enter these amounts on line 3a only. Because you do not report patronage dividends from these items as income, you must subtract the amount of the dividend from the cost or other basis of these items.
taxmap/instr/i1040sf-006.htm#TXMP6d54122b

Lines 4a and 4b(p4)

rule
Enter on line 4a the total of the following amounts.
taxmap/instr/i1040sf-006.htm#TXMP5eb6baff

(p4)

rule
These amounts are government payments you received and are usually reported to you on Form 1099-G. You may also receive Form CCC-1099-G from the Department of Agriculture showing the amounts and types of payments made to you.
On line 4b, report only the taxable amount. For example, do not report the market gain shown on Form CCC-1099-G on line 4b if you elected to report CCC loan proceeds as income in the year received (see Lines 5a Through 5c next). No gain results from redemption of the commodity because you previously reported the CCC loan proceeds as income. You are treated as repurchasing the commodity for the amount of the loan repayment. However, if you did not report the CCC loan proceeds under the election, you must report the market gain on line 4b.
If you received a direct or counter-cyclical payment in 2011, your farm losses may be reduced or eliminated. See Excess farm loss rules, later, for more details.
taxmap/instr/i1040sf-006.htm#TXMP66ad373c

Lines 5a Through 5c(p4)

rule
taxmap/instr/i1040sf-006.htm#TXMP3e60c60d
Commodity Credit Corporation (CCC) loans.(p4)
rule
In most cases, you do not report CCC loan proceeds as income. However, if you pledge part or all of your production to secure a CCC loan, you can elect to report the loan proceeds as income in the year you receive them. If you make this election (or made the election in a prior year), report loan proceeds you received in 2011 on line 5a. Attach a statement to your return showing the details of the loan(s). See chapter 3 of Pub. 225.
taxmap/instr/i1040sf-006.htm#TXMP352e23d8
Forfeited CCC loans.(p4)
rule
Include the full amount forfeited on line 5b, even if you reported the loan proceeds as income. This amount may be reported to you on Form 1099-A.
If you did not elect to report the loan proceeds as income, also include the forfeited amount on line 5c.
If you did elect to report the loan proceeds as income, you generally will not have an entry on line 5c. But if the amount forfeited is different from your basis in the commodity, you may have an entry on line 5c.
See chapter 3 of Pub. 225 for details on the tax consequences of electing to report CCC loan proceeds as income or forfeiting CCC loans.
If you received a CCC loan in 2011, your farm losses may be reduced or eliminated. See Excess farm loss rules, later, for more details.
taxmap/instr/i1040sf-006.htm#TXMP7fe3a80b

Lines 6a Through 6d(p4)

rule
In most cases, you must report crop insurance proceeds in the year you receive them. Federal crop disaster payments are treated as crop insurance proceeds. However, if 2011 was the year of damage, you can elect to include certain proceeds in income for 2012. To make this election, check the box on line 6c and attach a statement to your return. See chapter 3 of Pub. 225 for a description of the proceeds for which an election can be made and for what you must include in your statement.
In most cases, if you elect to defer any eligible crop insurance proceeds, you must defer all such crop insurance proceeds (including federal crop disaster payments).
Enter on line 6a the total crop insurance proceeds you received in 2011, even if you elect to include them in income for 2012.
Enter on line 6b the taxable amount of the proceeds you received in 2011. Do not include proceeds you elect to include in income for 2012.
Enter on line 6d the amount, if any, of crop insurance proceeds you received in 2010 and elected to include in income for 2011.
taxmap/instr/i1040sf-006.htm#TXMP42c72722

Line 7b(p4)

rule
Enter income you receive from custom hire (machine work) on line 7b.
taxmap/instr/i1040sf-006.htm#TXMP78c519fe

Line 8b(p4)

rule
Enter on line 8b income not otherwise reportable on lines 1 through 7b. This includes the following types of income.
caution
For property acquired and hedging positions established, you must clearly identify on your books and records both the hedging transaction and the item(s) or aggregate risk being hedged.
Purchase or sales contracts are not true hedges if they offset losses that already occurred. If you bought or sold commodity futures with the hope of making a profit due to favorable price changes, report the profit or loss on Form 6781 instead of this line.
taxmap/instr/i1040sf-006.htm#TXMP034d9303

Line 9(p5)

rule
Since lines 1a, 2a, 7a, and 8a are zero, enter on line 9 the total of amounts from lines 1e, 2b, 3b, 4b, 5a, 5c, 6b, 6d, 7b, and 8b.