Introduction

You may receive income from many sources. You must report the income from all the different sources on your tax return, unless it is excluded by law. Where you report the income on your tax return depends on its source.

This chapter discusses farm income you report on Schedule F (Form 1040), Profit or Loss From Farming. For information on where to report other income, see the Instructions for Forms 1040 and 1040-SR, U.S. Individual Income Tax Return.

Accounting method. The rules discussed in this chapter assume you use the cash method of accounting. Under the cash method, you generally include an item of income in gross income in the year you receive it. See Cash Method in chapter 2.

If you use an accrual method of accounting, different rules may apply to your situation. See Accrual Method in chapter 2.

Topics This chapter discusses:

• Schedule F (Form 1040)

• Sales of farm products

• Rents

• Agricultural program payments

• Income from cooperatives

• Cancellation of debt

• Income from other sources

• Income averaging for farmers

Useful Items You may want to see:

Publication

Sch E (Form 1040) S ch E (Form 1040) upplemental

Income and Loss

Sch F (Form 1040) Sch F (Form 1040) Profit or Loss From

Farming

Sch J (Form 1040) Sch J (Form 1040) Income Averaging for

Individuals with Income from Farming or Fishing

525

544

550

908

925

4681

525 Taxable and Nontaxable Income

544 Sales and Other Dispositions of Assets

550 Investment Income and Expenses

908 Bankruptcy Tax Guide

925 Passive Activity and At-Risk Rules

4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments

Form (and Instructions)

982

982 Reduction of Tax Attributes Due to Discharge of Indebtedness

Publication 225 (2025) Chapter 3 Farm Income 9

1099-G

1099-G Certain Government Payments

Table 3-1. Where To Report Sales of Farm Products

1099-MISC

1099 NEC

1099- M ISC iscellaneous Information

1099 N EC onemployee Compensation

1099-PATR 1099-PA T R axable Distributions

Received From Cooperatives

4797

4835

4797 Sales of Business Property

4835 Farm Rental Income and Expenses

See How To Get Tax Help for information about getting publications and forms.