What Schedule F (Form 1040) (2020) Is For

Schedule F (Form 1040), Profit or Loss From Farming, is used to report income and expenses from farming operations for individual taxpayers, partnerships, estates, and trusts (IRS Instructions for Schedule F 2020). You must file Schedule F if you cultivate, operate, or manage a farm for gain or profit—either as an owner or tenant—and include farming activities such as raising crops, livestock, poultry, fish, or operating a ranch, plantation, or nursery (IRS Instructions for Schedule F 2020). The form calculates your net farm profit or loss, which is then reported on your main tax form and may subject you to self-employment tax via Schedule SE.

When You'd Use Schedule F (Form 1040) for 2020 (Late or Amended Filing)

If you're filing a late or amended 2020 return, you'll need Schedule F if you had farming income or expenses that year but didn't file on time. Typical scenarios include receiving IRS notices demanding unfiled returns (CP59, CP515, or similar), discovering unreported farm income after your original deadline, or needing to correct errors on your original 2020 return filed during the tax year 2021. You may also need Schedule F for 2020 if you owe a balance and the IRS has begun collection actions, or if you're trying to claim a refund—note that for most 2020 returns, the three-year refund window expired on May 17, 2024, because the IRS extended the 2020 filing deadline to May 17, 2021 due to COVID-19 (IRS.gov). If you paid estimated taxes or had withholdings for 2020 and haven't claimed them yet, file as soon as possible to see if any refund is still available; after the statute expires, unclaimed refunds revert to the U.S. Treasury (IRS Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund).

Key Rules Specific to 2020

The 2020 tax year included several unique provisions. The Coronavirus Aid, Relief, and Economic Security (CARES) Act retroactively repealed the excess business loss limitation rules for 2020, allowing taxpayers to deduct business losses exceeding $250,000 (or $500,000 for joint filers) without restriction (IRS Instructions for Schedule F 2020). Farmers who received Coronavirus Food Assistance Program (CFAP) payments must report these as taxable farm income on Schedule F, line 4a (IRS Instructions for Schedule F 2020). Additionally, taxpayers eligible for COVID-19 related tax credits for paid sick and family leave under the Families First Coronavirus Response Act (FFCRA) must include those credits in gross income if they took them on employment tax returns (IRS Instructions for Schedule F 2020). The standard mileage rate for business use of vehicles was 57.5 cents per mile for 2020, slightly different from current rates (IRS Instructions for Schedule F 2020). If you filed 2019 or 2020 returns by September 30, 2022, you may have qualified for automatic late-filing penalty relief under temporary IRS programs (IRS.gov, News Release IR-2022-155, August 24, 2022).

Step-by-Step (High Level)

Request your tax transcripts

Order your 2020 Wage and Income Transcript and Account Transcript from IRS.gov using "Get Transcript Online" or by calling 800-908-9946 to verify what the IRS has on file for your income, withholdings, and any prior payments (IRS.gov, Get Transcript).

Gather your farm records

Collect all documents for 2020 farm income (sales receipts, 1099-MISC, 1099-G, CCC-1099-G for CFAP or other program payments) and expenses (invoices, receipts for feed, seed, fertilizer, equipment, labor, depreciation schedules) (IRS Instructions for Schedule F 2020).

Complete the correct-year Schedule F

Use the 2020 version of Schedule F and its 2020 instructions, not the current year's form, to ensure you're applying 2020 tax law, especially for COVID-related rules and rates (IRS.gov/prior-year-forms).

Prepare Form 1040 or 1040-SR (2020)

Enter your Schedule F net profit or loss on the appropriate line of your 2020 Form 1040, complete Schedule SE if you owe self-employment tax, and attach all required schedules and forms (IRS Instructions for Form 1040 2020).

Review and attach additional forms

Include any other forms (Form 4562 for depreciation, Form 8824 for like-kind exchanges, Form 9465 if requesting a payment plan, etc.) and write "Filed pursuant to section 6081" if claiming reasonable cause for late filing (IRS Publication 556).

Mail or electronically file

Check current IRS guidance for whether 2020 returns can still be e-filed; if not, mail your return to the address listed in the 2020 Form 1040 instructions for your state and keep copies of everything you send (IRS Instructions for Form 1040 2020).

Keep complete records

Retain copies of your filed return, all attachments, schedules, transcripts, and proof of mailing or e-file confirmation for at least three years from the date you file or two years from when you paid the tax, whichever is later (IRS Publication 583, Starting a Business and Keeping Records).

Common Mistakes and How to Avoid Them

Using the wrong year's form

Always use the 2020 version of Schedule F and Form 1040 for a 2020 return—using a current-year form may trigger processing delays or incorrect tax calculations because tax law, rates, and credits differ by year.

Missing income reported to the IRS

The IRS receives copies of your 1099-MISC, 1099-G, CCC-1099-G, and W-2 forms; request your Wage and Income Transcript for 2020 before filing to ensure you report all income the IRS knows about, avoiding underreporting penalties.

Failing to report CFAP or other COVID-related farm payments

Coronavirus Food Assistance Program payments are taxable income on line 4a of Schedule F; omitting them is a common mistake that leads to IRS notices and adjustments (IRS Instructions for Schedule F 2020).

Deducting prepaid farm supplies incorrectly

If your prepaid supplies (feed, seed, fertilizer) exceed 50% of your other deductible farm expenses, your deduction may be limited to the year you actually use or consume them; review IRS Publication 225 (Farmer's Tax Guide) and the 50% rule to avoid disallowed deductions.

Not claiming depreciation or Section 179 expensing

Forgetting to complete Form 4562 for depreciation, special depreciation allowances, or Section 179 expensing on equipment or buildings costs you legitimate deductions; attach Form 4562 to your Schedule F to claim these (IRS Instructions for Schedule F 2020, Instructions for Form 4562).

Ignoring the three-year refund deadline

For 2020, the refund statute expired on May 17, 2024; if you're filing after that date and expecting a refund, it's likely forfeited—however, if you owe taxes, you should still file to stop late-filing penalties from increasing (Internal Revenue Code Section 6511).

What Happens After You File

Once you mail or e-file your late or amended 2020 Schedule F and Form 1040, the IRS will process your return, which can take 6 to 16 weeks for paper returns or 3 weeks for accepted e-filed returns (IRS.gov, Filing Past Due Tax Returns). If you owe a balance, you'll receive a notice showing the original tax, plus failure-to-file penalties (5% per month up to 25% of unpaid tax), failure-to-pay penalties (0.5% per month), and interest compounded daily from the original due date (Internal Revenue Code Sections 6651 and 6601). You can request a payment plan using Form 9465 or through the IRS Online Payment Agreement tool if you can't pay in full; plans under $50,000 may be set up online with no financial disclosure required (IRS.gov, Payment Plans). If you disagree with the IRS's adjustments or penalties, you have appeal rights—respond to any notice within the stated deadline (usually 30 or 60 days) by writing to the IRS office shown on the notice or requesting an appeal through the Taxpayer Advocate Service (IRS Publication 556). Keep checking your IRS Account online or request an Account Transcript to see when your return is processed and any balance due or refund issued (IRS.gov, Get Transcript). If penalties were applied for 2020, you may still qualify for first-time penalty abatement or reasonable cause relief; review IRS Topic 653 and submit Form 843 (Claim for Refund and Request for Abatement) or write a penalty abatement letter if you believe you have grounds (IRS.gov, Topic No. 653).

FAQs

If I didn't file Schedule F for 2020, will the IRS penalize me?

Yes, if you owed tax, the IRS assesses a failure-to-file penalty of 5% of your unpaid tax per month (or partial month) up to 25%, plus a failure-to-pay penalty and interest (Internal Revenue Code Section 6651). File as soon as possible to stop the penalties from accruing further; the IRS automatically waived certain failure-to-pay penalties for many 2020 and 2021 filers under temporary COVID relief, but failure-to-file penalties remain unless you qualify for first-time penalty abatement or show reasonable cause (IRS.gov, News Release IR-2023-221, December 7, 2023).

Can I still get a refund if I file my 2020 Schedule F late?

Generally, no—the three-year refund statute for 2020 tax year returns expired on May 17, 2024 (three years after the extended May 17, 2021 filing deadline) (Internal Revenue Code Section 6511). If you file after that date, any refund from withholdings or estimated payments is forfeited to the U.S. Treasury, though you should still file if you owed tax to avoid or minimize penalties.

Do I need transcripts before filing a late 2020 Schedule F?

It's strongly recommended. Request your 2020 Wage and Income Transcript to see all Forms 1099 and W-2 the IRS received, and your Account Transcript to check for any estimated payments, withholdings, or previous filings (IRS.gov, Transcript Types and How to Order Them). This prevents underreporting income and helps you reconcile payments, avoiding IRS adjustments and penalties.

Which form do I use to amend a 2020 Schedule F already filed?

Use Form 1040-X (Amended U.S. Individual Income Return) for 2020, attach a corrected 2020 Schedule F showing the changes, and include an explanation of what you're correcting (IRS Instructions for Form 1040-X). You must file Form 1040-X within three years of your original filing date or two years of paying the tax, whichever is later, to claim any additional refund (though the 2020 refund window has expired).

If I file Schedule F late for 2020, do I also need to amend my state farm return?

Most states conform to federal farm income reporting, so if you file a late or corrected federal Schedule F, check your state's tax agency website or instructions to see if you must also file an amended state return (many states have separate deadlines and conformity rules for federal changes). Contact your state Department of Revenue or similar agency for specific requirements.

How long will it take the IRS to process my late 2020 Schedule F?

Paper-filed late returns typically take 6 to 16 weeks to process; e-filed returns (if still accepted for 2020) take about 3 weeks if there are no errors (IRS.gov, Filing Past Due Tax Returns). You can check processing status through your IRS online account or by calling the IRS at 800-829-1040, though wait times may be long.

What if I can't pay the tax I owe on my late 2020 Schedule F?

File the return anyway to stop late-filing penalties from growing, then immediately request a payment plan using Form 9465 or the IRS Online Payment Agreement application (IRS.gov, About Form 9465). Short-term payment plans (up to 180 days) have no setup fee; long-term installment agreements (up to 72 months) for balances under $50,000 can be set up online, and the IRS will work with you if you demonstrate an inability to pay in full (IRS Instructions for Form 9465).

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