What SCHEDULE F (Form 1040) (2021) Is For

Schedule F (Form 1040) is used to report profit or loss from farming operations and is attached to your main Form 1040, 1040-SR, 1040-NR, Form 1041 (estates and trusts), or Form 1065 (partnerships) (IRS Instructions for Schedule F 2021). You must file Schedule F if your principal business is farming—meaning you cultivate land, raise and harvest crops, or raise livestock, poultry, or fish as your primary occupation. The net profit or loss you calculate on Schedule F flows directly to your Form 1040 and affects both your taxable income and your self-employment tax obligation reported on Schedule SE.

When You'd Use SCHEDULE F (Form 1040) for 2021 (Late or Amended Filing)

You may be filing Schedule F for 2021 late if you never filed your 2021 return by the original deadline (May 17, 2021, or the extended deadline of October 15, 2021) or if you received IRS notices such as CP2000, CP2501, or a balance-due notice indicating unfiled returns. Late filing is common when taxpayers missed the deadline, had complex farming income they didn't know how to report, or faced personal circumstances that prevented timely filing. Keep in mind the three-year refund statute: if you're owed a refund from 2021 federal withholding or estimated tax payments, you generally must file your return by April 18, 2025 (three years from the original April 2022 due date), or you forfeit that refund permanently (IRS Filing Past Due Tax Returns). If you already filed your 2021 Schedule F but discovered errors—such as missed deductions, incorrect income reporting, or changes in depreciation—you would file an amended return using Form 1040-X along with a corrected Schedule F. In either scenario, gather wage and income transcripts from the IRS (by calling 1-800-908-9946 or using the IRS online transcript tool at IRS.gov/Transcript) before you prepare your late or amended Schedule F to ensure you reconcile all income reported by third parties and any withholding credits you're entitled to claim.

Key Rules Specific to 2021

The 2021 tax year included several material rules you should note when preparing your Schedule F. First, the Coronavirus Food Assistance Program (CFAP) payments made in 2021 are reportable as government agricultural program payments on line 4a and are fully taxable (IRS Instructions for Schedule F 2021). Second, COVID-19-related employee retention credits and paid sick/family leave wage credits were extended into 2021 under the American Rescue Plan Act; if you claimed these credits on Forms 941, 943, or 944, you must report the credit amounts as "other income" on line 8 of Schedule F and reduce your wage deduction accordingly. Third, the excess business loss limitation rules under section 461(l) applied in 2021 for noncorporate taxpayers, potentially capping losses above $524,000 (married filing jointly) or $262,000 (other filers), which you would calculate on Form 461 (IRS Instructions for Schedule F 2021). Fourth, if you elected in 2020 to defer reporting income from livestock sold due to weather-related conditions (drought, flood), you must include that deferred income on your 2021 Schedule F, line 2. Finally, farmers who received more than two-thirds of their gross income from farming in 2020 or 2021 and who file by March 1, 2022, avoided the estimated tax penalty; late filers in 2025 will face the standard failure-to-file penalty of 5% per month (up to 25%) on unpaid tax, plus interest compounding since the original due date (IRS Topic No. 160, Failure to File).

Step-by-Step (High Level)

Step 1: Request Your 2021 Transcripts

Filing your 2021 Schedule F late or amended involves the following high-level steps. First, request your 2021 wage and income transcript and tax account transcript from the IRS at IRS.gov/Transcript or by calling 1-800-908-9946; these transcripts show all Forms W-2, 1099-MISC, 1099-G, and CCC-1099-G the IRS received, as well as your federal withholding and estimated tax payments, ensuring you don't miss reportable income or credits.

Step 2: Obtain the Correct 2021 Forms and Instructions

Second, obtain the correct 2021 Schedule F form and the 2021 Instructions from IRS.gov/pub/irs-prior (do not use current-year forms for a 2021 return, as instructions and rules differ year to year).

Step 3: Complete Schedule F Income and Expense Sections

Third, complete Schedule F Part I (Cash Method) or Parts II and III (Accrual Method) with your farming income and expenses, double-checking that you include CCC loan forfeitures, crop insurance proceeds, government program payments, and cooperative distributions as instructed for 2021.

Step 4: Calculate Net Profit or Loss and Prepare Your Return

Fourth, calculate your net farm profit or loss on line 34 of Schedule F, then attach it to your completed 2021 Form 1040 (or 1040-SR/1040-NR); if amending, complete Form 1040-X to show the changes and attach your corrected Schedule F.

Step 5: Attach Required Supporting Forms

Fifth, attach any required supporting forms (Schedule SE for self-employment tax, Form 4562 for depreciation if not already filed, Form 8582 if you have passive losses, Form 461 for excess business loss limitations).

Step 6: File by Mail (Late Original) or File the Amendment

Sixth, if filing a late original return, mail your complete 2021 return with all schedules to the IRS address shown in your state's instructions for Form 1040; if filing an amended return, mail Form 1040-X to the address shown in the Instructions for Form 1040-X (most 2021 amended returns cannot be e-filed unless you use commercial software that supports prior-year electronic amendments).

Step 7: Retain Copies and Records

Finally, keep copies of the entire return, all worksheets, receipts, and transcripts for at least three years in case the IRS has questions or you need to reference your filing later.

Common Mistakes and How to Avoid Them

• Reporting CCC loan proceeds incorrectly: Most farmers do not report Commodity Credit Corporation loan proceeds as income in the year received unless they elected to include them; however, when you forfeit the loan, the forfeited amount goes on line 5b and may also appear on line 5c if you did not elect inclusion. Review IRS Publication 225, Chapter 3, to understand the correct treatment and avoid double-counting or omitting income.

• Missing or overstating deductions for prepaid farm supplies: If you use the cash method and your prepaid supplies (feed, seed, fertilizer bought in 2021 but not used until 2022) exceed 50% of your other deductible farm expenses, the excess may not be deductible in 2021 and must be deferred to the year of use. Calculate this limit carefully to avoid disallowed deductions and potential IRS adjustments (IRS Instructions for Schedule F 2021).

• Failing to capitalize uniform capitalization (UNICAP) costs: If you produced property for resale or had significant production activity and are not a small business taxpayer (defined as having average annual gross receipts over $26 million), you may need to capitalize direct and indirect costs rather than deduct them currently. Review the Uniform Capitalization Rules in IRS Publication 225, Chapter 6, and properly adjust line 32f if capitalization applies.

• Not reconciling third-party information returns: Always compare your income entries on Schedule F against the IRS wage and income transcript to ensure you report all Forms 1099-MISC, 1099-G, CCC-1099-G, and 1099-PATR; underreporting third-party income is a leading cause of IRS notices and additional assessments.

• Using the wrong tax year forms or instructions: When filing late or amended for 2021, you must use the 2021 version of Schedule F and follow the 2021 instructions (found at IRS.gov/pub/irs-prior); do not use the current year's form, as tax laws, depreciation rules, and line numbers change annually.

• Ignoring self-employment tax on Schedule SE: Net farm profit from Schedule F line 34 is subject to self-employment tax (Social Security and Medicare), which you calculate on Schedule SE and report on Form 1040 line 15; forgetting this step understates your total tax liability and can trigger penalties and interest on the shortfall.

What Happens After You File

Once you mail your 2021 Schedule F (late or amended), the IRS typically processes paper returns within 6 to 16 weeks, though amended returns can take up to 16 to 20 weeks (IRS Amended Return Frequently Asked Questions). If you owe additional tax, you should pay it when you file to minimize interest and penalties; if you cannot pay in full, you may request an installment agreement by submitting Form 9465 or applying online at IRS.gov/OPA, which allows monthly payments (usually with setup fees ranging from $31 to $225 depending on the payment method). The IRS will send you a notice or letter acknowledging receipt and processing, and if they adjust your return or disagree with any items, they will send a CP2000 or similar notice explaining the proposed changes, the additional tax or refund, and your appeal rights. You generally have 30 to 90 days from the notice date to respond, either agreeing with the adjustment, disputing it with documentation, or requesting an appeals conference or a Collection Due Process hearing if collection action is proposed (IRS Topic No. 308, Amended Returns). If you're claiming a refund on a late-filed 2021 return, remember you must file by April 18, 2025, or the refund is lost forever; after that date, no refund is available even if withholding or credits exceed your tax (IRS Filing Past Due Tax Returns). Interest accrues on any unpaid balance from the original due date (April 18, 2022, or October 15, 2021, if you had an extension) at the federal short-term rate plus 3%, compounding daily, and the IRS will bill you separately for interest and any penalties once your return is processed (IRS Penalties and Interest).

FAQs

Can I still get a refund if I'm filing my 2021 Schedule F in 2025?

Yes, but only if you file by April 18, 2025—three years after the original April 2022 deadline. After that date, you forfeit any refund from 2021 federal withholding, estimated tax payments, or refundable credits. Even if you file late, file by that date to claim what you're owed (IRS Filing Past Due Tax Returns).

Will I owe penalties and interest for filing my 2021 Schedule F late?

Yes, if you owe tax. The failure-to-file penalty is 5% of the unpaid tax per month (or part of a month) up to a maximum of 25%, and a separate failure-to-pay penalty of 0.5% per month applies. Interest compounds daily from the original due date at the federal short-term rate plus 3%. If you don't owe tax (you're due a refund), there's no failure-to-file penalty, only a delay in receiving your refund (IRS Failure to File Penalty).

How do I get my 2021 wage and income transcripts before filing?

Visit IRS.gov/Transcript and create or log into your Individual Online Account to view and download your 2021 wage and income transcript and tax account transcript online. Alternatively, call 1-800-908-9946 and request transcripts by phone; they'll be mailed to your address of record within 5 to 10 days (IRS Get Your Tax Records and Transcripts).

If I'm filing late or amended, do I need to file other years' returns first?

Not necessarily, but the IRS may hold your 2021 refund if you have two or more subsequent years' returns missing (for example, if you haven't filed 2022 or 2023). If you owe tax for other years, the IRS can offset any 2021 refund against those liabilities. It's generally wise to file all missing years in chronological order to avoid delays and offsets (IRS Filing Past Due Tax Returns).

Can I e-file my 2021 Schedule F in 2025, or must I mail it?

For late original returns, you must mail your 2021 Form 1040 and Schedule F to the address shown in the 2021 Form 1040 instructions for your state; the IRS does not accept e-filed original returns for years prior to the current and previous year. For amended returns, check with your tax software or consult a tax professional, as electronic filing of Form 1040-X availability depends on the software provider and timing. If e-filing is unavailable, mail the paper Form 1040-X and corrected Schedule F to the address in the Instructions for Form 1040-X (IRS File an Amended Return).

Should I also amend my state return if I'm filing or amending my 2021 federal Schedule F?

In most cases, yes. State income tax returns typically rely on your federal adjusted gross income (AGI) from Form 1040, which includes your Schedule F net profit or loss. If you're filing a late federal return or amending your 2021 federal return, you should file or amend your 2021 state return to match. Check your state's Department of Revenue website for forms, instructions, and deadlines—many states follow the three-year federal refund statute, but some have shorter or longer windows. Filing the state return late may also trigger separate state penalties and interest.

What if I can't pay the full amount I owe when I file my late 2021 Schedule F?

File your return by the soonest possible date to stop the failure-to-file penalty (which is much larger than the failure-to-pay penalty) and to start the clock on the three-year refund statute if you had withholding. Then apply for an IRS installment agreement using Form 9465 or online at IRS.gov/OPA. The IRS offers short-term payment plans (up to 180 days) and long-term monthly installment agreements. Setup fees vary from $31 (online direct debit) to $225 (mailed payment by check), and interest and the 0.5% monthly failure-to-pay penalty continue until you pay in full, but an approved agreement prevents immediate collection action (IRS About Form 9465, Installment Agreement Request).