Anexo F del IRS (formulario 1040) (2020): Guía de impuestos sobre el trabajo por cuenta propia

Schedule F (Form 1040) is used by sole proprietor farmers to report farm income and deductible expenses for 2020. It attaches to Form 1040, Form 1040-SR, Form 1040-NR, Form 1041, or Form 1065. Both cash and accrual method farmers use this form.

Late Filers

Farmers who missed the original 2020 deadline can still submit Schedule F to report farm income and stop ongoing failure-to-file penalties.

Multiple Income Sources

Farmers with wages, self-employment income, or other sources must attach Schedule F alongside Schedule C, Schedule D, or other applicable schedules.

Itemizing Deductions

Schedule F lets farmers deduct ordinary and necessary agricultural expenses — including feed, fuel, labor, and car expenses — directly, without using Schedule A.

Claiming 2020 Credits

Farmers who paid federal excise taxes on fuel used in farming may claim Fuel Tax Credits on their 2020 return using Form 4136.

IRS Compliance

Filing Schedule F for 2020 creates an official IRS record of farm income and expenses, which may be required for loan applications or audit responses.

Citizens Abroad / Military

U.S. citizens abroad or serving in the military who filed in 2020 must attach Schedule F to Form 1040 and may qualify for an extension.

Follow these steps to complete your 2020 Schedule F accurately — several steps include rules unique to this tax year. Refer to IRS Publication 225, Farmer's Tax Guide, for additional guidance.

1. Gather Your Documents Before Starting

Gather all 2020 farm income records — including Form 1099-PATR for cooperative distributions, agricultural program payment records, crop insurance proceeds, and receipts for every deductible expense — before filling out any section.

2. Choose the Correct Filing Status

Your filing status on Form 1040 controls your standard deduction and tax bracket; it does not appear on Schedule F. The five 2020 statuses are single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Confirm you are using the current 2020 Form 1040 and not an outdated version with a different label.

3. Report All Income on the Correct Lines

Report all farm income in Part I (cash method) or Part III (accrual method). For 2020: Line 2 covers livestock and raised products; Line 3b cooperative distributions; Line 4b agricultural program payments; Line 6b crop insurance proceeds; Line 8 other income, including fuel tax refunds. [2020 Only] Crop insurance proceeds may be deferred to 2021 if a deferral election is attached.

4. Calculate Adjusted Gross Income (AGI)

Net farm profit or loss from Line 34 flows to Schedule 1 and then to Form 1040 to compute AGI. Above-the-line adjustments for farmers include self-employment tax deduction, self-employed health insurance, and retirement plan contributions. AGI controls eligibility for most credits and deductions on your return.

5. Choose Your Deductions and Apply Exemptions

For 2020, standard deduction amounts are: $12,400 for single, $24,800 for married filing jointly, $18,650 for head of household, and $12,400 for married filing separately. [2020 Only] The Pease limitation was permanently repealed before 2020 and does not reduce itemized deductions. Farmers with significant Schedule A deductions should determine whether itemizing exceeds the applicable standard deduction for their filing status.

6. Claim the 2020-Specific Fuel Tax Credit [2020 Only]

Farmers who used fuel for qualifying agricultural activities may claim a fuel tax credit using Form 4136. Attach Form 4136 to your 2020 Form 1040 and carry the credit to Schedule 3, Line 12.

Missing Schedule F (Form 1040) or Tax Records for 2020?

Farmers who filed late for 2020 may no longer have their original income documents on hand. IRS transcripts and Social Security Administration records can help reconstruct accurate income figures before you complete Schedule F.

IRS Wage & Income Transcript

An IRS Wage & Income Transcript for 2020 lists all income third parties reported to the IRS, including Form 1099-PATR cooperative distributions and agricultural program payments under your SSN.

IRS Account Transcript

An IRS Account Transcript for 2020 shows your filing history, payments received, penalties assessed, and account adjustments — useful for confirming what has already been reported or paid.

Social Security Administration

The Social Security Administration can provide a record of your reported earnings for 2020, which helps self-employed farmers verify net farm income subject to self-employment tax.

Contact Prior Employers

Contact former employers directly or use the IRS Get Transcript tool to obtain copies of any W-2 or 1099 forms from 2020 that you no longer have.

Do not estimate income figures on Schedule F — use IRS transcripts to match reported amounts exactly and avoid follow-up notices.

These are the most common errors causing IRS processing delays, rejected returns, or missed credits.

• Using the wrong tax year form — Filing a Schedule F from any year other than 2020 will result in rejection — verify the tax year on the form before starting.
• Missing Form 4136 for Fuel Tax Credits — Farmers who used qualifying fuel must attach Form 4136 to claim Fuel Tax Credits; omitting it means the credit will not be applied.
• Wrong filing status label — Using an outdated filing status label, no longer on the 2020 Form 1040, can trigger IRS processing errors and delay your return.
• Applying Pease limitations incorrectly — The Pease limitation was repealed before 2020; applying any phase-out to Schedule A deductions on a 2020 return produces an incorrect AGI.
• Treating crop insurance proceeds as partially deferred without an election — Crop insurance proceeds received in 2020 are fully taxable unless a written deferral election is properly attached — without it, the deferral is disallowed.
• Assuming a refund is still available — The three-year refund window for 2020 closed July 15, 2023; a late-filed 2020 return will not generate a refund unless an exception applies.
• Missing or incorrect Social Security numbers — All Social Security numbers for the taxpayer, spouse, and dependents must match IRS records exactly — mismatches trigger rejection or extended processing delays.
• Unsigned return — A paper-filed 2020 Form 1040 with Schedule F must be signed by the taxpayer and spouse; an unsigned return is treated as unfiled.
• Missing attachments — Required attachments — including Form 4136 and Form 4562 — must be included; missing schedules cause the return to be processed incorrectly.

What is IRS Schedule F (Form 1040) used for?

Schedule F (Form 1040) is the IRS form used by sole proprietor farmers to report profit or loss from farming for a specific tax year. For 2020, it covers farm income, agricultural activities, and deductible farm expenses, and attaches directly to Form 1040, Form 1040-SR, Form 1041, or Form 1065.

Can I still file a 2020 Schedule F tax return?

Yes, you can still file a 2020 Schedule F return, but the deadline to receive a refund has passed for most filers. Filing now stops the failure-to-file penalty from increasing, creates an IRS compliance record, and may be required for loan applications, government programs, or financial documentation.

What farm income must be reported on Schedule F for 2020?

All income from agricultural activities in 2020 must be reported, including sales of livestock and raised products (Line 2), taxable cooperative distributions from Form 1099-PATR (Line 3b), agricultural program payments (Line 4b), crop insurance proceeds (Line 6b), and other farm income, such as custom hire income and fuel tax refunds on Line 8.

What expenses can farmers deduct on the 2020 Schedule F?

Deductible expenses in Part II of Schedule F include feed, fertilizers, seeds, car expenses and truck expenses (with Form 4562), chemicals, labor hired, repairs, utilities, veterinary and breeding costs, insurance, excise taxes, and Section 179 depreciation. All expenses must be ordinary, necessary, and directly related to the farming operation.

How does Schedule F relate to Form 1040 and self-employment tax for 2020?

Net farm profit from Schedule F Line 34 carries to Schedule 1 and then to Form 1040, where it is included in total income. Farmers with net profit are also subject to self-employment tax calculated on Schedule SE. Self-employed individuals may deduct half of the self-employment tax above the line on Form 1040.

Can I use Schedule F to report income from dog breeding or pet care?

No, income from breeding, raising, or caring for dogs, cats, or other pet animals must be reported on Schedule C (Form 1040), not Schedule F. Income from providing agricultural services such as soil preparation, farm labor, or horticultural management for a fee is also reported on Schedule C.

Does Schedule F apply if I am part of a farming partnership?

No, if you operate a farm through a partnership, the partnership files Form 1065, Partnership Return of Income, and issues Schedule K-1 to each partner. Partners report their share of farm income or loss from Schedule K-1 on Form 1040, but do not use Schedule F for partnership farm income.

What is the difference between cash and accrual method reporting on Schedule F?

Cash-method farmers complete Parts I and II of Schedule F, reporting income when received and expenses when paid. Accrual-method farmers complete Parts II and III, reporting income when earned and expenses when incurred, regardless of payment timing. The accounting method used must be noted on Line C at the top of the form.