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Are federal agricultural payments (CRP payments) taxable?

Forum|Forum|7 years ago
June 6, 2019
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I believe they are but when I enter the amount in 4a, TurboTax doesn't flow the amount to Line 4b. Shouldn't it?

TurboTax Home & Biz Windows

Best answer by Cattlerancher

Yes, CRP payments are taxable but Self Employment tax may or may not apply. After you have entered the amount in the 1099-G section, review the Ag Programs section just below there in the Farm Income and Expenses section. Carefully read the interview, then TurboTax will enter the taxable portion on 4b and determine if SE tax applies.

It can also be done in the forms mode, but I recommend the Ag Programs interview first.

C

CattlerancherAnswer

Employee

Yes, CRP payments are taxable but Self Employment tax may or may not apply. After you have entered the amount in the 1099-G section, review the Ag Programs section just below there in the Farm Income and Expenses section. Carefully read the interview, then TurboTax will enter the taxable portion on 4b and determine if SE tax applies.

It can also be done in the forms mode, but I recommend the Ag Programs interview first.

E

ekaykinterAuthor

Thanks for the info. I also believe that CRP payments are taxable but Turbo Tax Home & Biz shows they are not. Try it. I entered the data as suggested on the 1099-G worksheet and it shows up (as it should) on Line 4a my schedule F. Unfortunately it does to flow to 4b (taxable amount). Turbo Tax needs to fix this problem or at least have a question/explanation that lets users know they can't just blindly accept that CRP payments are not taxable. The ARE taxable. Does anyone at TurboTax read this stuff?