Did you know farmers and fishermen have special provisions? January 2020 Tax News

Special provisions

There are special provisions for farmers and fishermen regarding estimated tax payments.

Calendar year

If your tax year is the calendar year and at least two-thirds of your gross income (for 2018 or 2019) is from farming or fishing, your payment due date for your 2019 estimated tax is January 15, 2020.

The due dates for the first 3 payment periods don't apply to you. If you're a calendar year taxpayer and you file your 2019 Tax return (Form 540) by March 2, 2020, you don't need to make an estimated tax payment if you pay all the tax you owe at that time.

Fiscal year

If your tax year is a fiscal year you can either:

• Pay all your estimated tax by the 15th day after the end of your tax year
• File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year

Go to Underpayment of Estimated Tax by Farmers and Fishermen (5805F Instructions) or to IRS’ Tax Withholding and Estimated Tax (Publication 505) for more information.