Schedule F (Form 1040) 2013 — Farm Profit or Loss

Schedule F (Form 1040) 2013 is used by farmers and ranchers to report profit or loss from farming on their individual income tax return. It covers farm income sources — from livestock sales and crop insurance to government program payments — and attaches to Form 1040 for tax year 2013.

Late Filers

Farmers who missed the April 15, 2014, deadline can still file a 2013 Schedule F, though penalties have been accruing since that date.

Multiple Income Sources

Operators with livestock sales, cooperative distributions, agricultural program payments, and crop insurance proceeds must report each income source on the correct Schedule F line.

Itemizing Deductions

Farm businesses can deduct expenses for feed, fertilizers, seeds, depreciation, labor, and insurance by completing Part II of Schedule F.

Claiming 2013 Credits

Farmers with net profit on Schedule F line 34 may qualify for the 2013 Earned Income Credit, since farm profit counts as earned income. [2013 Only]

IRS Compliance

Filing Schedule F — even after the deadline — establishes an official compliance record with the IRS and reduces exposure to substitute returns.

Citizens Abroad / Military

U.S. citizens farming abroad and active-duty military members with farm income must report that income on Schedule F and may qualify for extended deadlines.

Follow the steps below to complete your 2013 Schedule F accurately. Several reporting rules and threshold amounts are specific to the 2013 tax year and differ from those in other years.

1. Gather Your Documents Before Starting

Collect all 1099-PATR forms from cooperatives, 1099-G forms for agricultural program payments and crop insurance, Form CCC-1099-G for Commodity Credit Corporation loans, W-2s for any wages, and records of all farm expenses paid during calendar year 2013.

2. Choose the Correct Filing Status [2013 Only]

Select one of the five filing statuses on Form 1040: Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widow(er) with Dependent Child. The 2013 form uses the label "Qualifying Widow(er)" — not "Qualifying Surviving Spouse," which was later updated. Filing status affects your standard deduction and the tax brackets you use.

3. Report All Farm Income on the Correct Lines

Cash-method farmers complete Part I of Schedule F: livestock resale sales on lines 1a–1c, raised product sales on line 2, cooperative distributions on lines 3a–3b, government program payments on lines 4a–4b, CCC loans on lines 5a–5c, crop insurance on lines 6a–6b, and custom hire income on line 7. Net farm profit or loss from line 34 transfers to Form 1040.

4. Calculate Adjusted Gross Income (AGI)

Above-the-line deductions that reduce your 2013 AGI include one-half of self-employment tax, self-employed health insurance premiums, retirement plan contributions, and student loan interest. AGI determines eligibility for the Earned Income Credit, IRA deductibility, and phase-out thresholds for other credits and deductions.

5. Choose Your Deductions and Apply Exemptions [2013 Only]

Choose between the 2013 standard deduction or itemized deductions on Schedule A. Standard deduction amounts for 2013: $6,100 for Single or Married Filing Separately, $12,200 for Married Filing Jointly or Qualifying Widow(er), and $8,950 for Head of Household. The 2013 Pease limitation also phased out total itemized deductions for higher-income taxpayers — a rule that no longer applies after 2017. [2013 Only]

6. Claim the 2013 Earned Income Credit [2013 Only]

Farmers with net profit on Schedule F line 34 may claim the 2013 Earned Income Credit. The maximum EIC for 2013 was $6,044 for taxpayers with three or more qualifying children. Attach completed Schedule EIC to Form 1040. [2013 Only]

Missing Schedule F (Form 1040) or Tax Records for 2013?

Late filers often no longer have the original income documents received in early 2014 for tax year 2013. The IRS and Social Security Administration retain records that can be used to accurately reconstruct your 2013 farm income and wages.

IRS Wage & Income Transcript

The IRS Wage and Income Transcript shows all income reported to the IRS by third parties for 2013 — including 1099-PATR, 1099-G, and W-2 figures needed for Schedule F.

IRS Account Transcript

The IRS Account Transcript confirms all payments, credits, and penalties posted to your 2013 account, and shows whether a return was ever filed for that year.

Social Security Administration

The SSA maintains annual earnings records for all covered wages and self-employment income; an SSA earnings statement can verify 2013 farm income when original records are unavailable.

Contact Prior Employers

For off-farm wages during 2013, contact prior employers to request a replacement W-2 or obtain the same figures from the IRS Wage and Income Transcript.

Do not estimate income figures on your 2013 return — always use IRS transcripts to match records exactly and avoid follow-up notices.

These are the most frequent errors causing IRS delays, rejected returns, or missed credits on 2013 filings.

• Using the wrong tax year form — Submitting a Schedule F from any year other than 2013 will result in rejection — verify the form year in the top-right corner before starting.
• Missing Schedule EIC/2013 credit — Farmers with net profit on Schedule F, line 34, may overlook their EIC eligibility; failing to attach Schedule EIC means the credit will not be applied. [2013 Only]
• Wrong filing status label — Using "Qualifying Surviving Spouse" instead of the 2013 label "Qualifying Widow(er) with Dependent Child" can trigger processing questions on a 2013 paper return.
• Applying Pease limitations incorrectly — The 2013 Pease limitation phased out itemized deductions for high-income taxpayers; failing to apply it correctly results in overstated deductions and a likely IRS notice. [2013 Only]
• Treating crop insurance proceeds as non-taxable — Crop insurance proceeds and federal crop disaster payments received in 2013 are generally taxable and must be reported on Schedule F lines 6a–6b.
• Assuming a refund is still available — The 2013 refund window closed in April 2017; filing now will not produce a refund for most taxpayers, even if one appears on the return.
• Missing or incorrect Social Security numbers — Every taxpayer, spouse, and dependent on Form 1040 must have a Social Security number exactly matching IRS records; errors delay processing and may disqualify credits.
• Unsigned return — A 2013 return filed without the required Form 1040 signature is invalid and will not be processed; both spouses must sign a joint return.
• Missing attachments — Schedule F must be filed with Schedule SE for self-employment tax and all other required schedules; omitting any attachment causes delays and IRS follow-up notices.

What is IRS Schedule F (Form 1040) 2013 used for?

Schedule F (Form 1040) 2013 reports profit or loss from a farming business for the 2013 tax year. It captures all farm income and deductible farm expenses, producing a net figure that flows to Form 1040 and is subject to both income tax and self-employment tax.

Can I still file a 2013 Schedule F tax return?

Yes, a 2013 Schedule F can still be filed as a paper return by mailing it to the IRS. Filing now stops the failure-to-file penalty and creates an official return. However, the 2013 refund window closed in April 2017, so most late filers will not receive a refund.

What types of farm income belong on Schedule F?

Schedule F 2013 covers livestock resale sales on lines 1a–1c, raised product sales on line 2, cooperative distributions on lines 3a–3b, government program payments on lines 4a–4b, CCC loans on lines 5a–5c, crop insurance on lines 6a–6b, and custom hire income on line 7.

Do I need to pay self-employment tax on farm profit?

Yes, net profit from Schedule F line 34 is subject to self-employment tax, calculated on Schedule SE. For 2013, the self-employment tax applied to 92.35% of net farm earnings. One-half of the resulting tax is then deductible as an above-the-line adjustment on Form 1040.

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

Cash-method farmers report income when received and expenses when paid, completing Parts I and II of Schedule F. Accrual-method farmers report income when earned and expenses when incurred, completing Parts II and III, and entering the Part III gross income total on Part I line 9.

What farm expenses are deductible on Schedule F 2013?

Part II of Schedule F lists deductible farm expenses including feed (line 16), fertilizers (line 17), chemicals (line 11), seeds (line 26), labor hired (line 22), repairs (line 25), insurance (line 20), depreciation and Section 179 (line 14), utilities (line 30), and veterinary costs (line 31).

Where does Schedule F income go on Form 1040?

Net farm profit or loss from Schedule F line 34 flows to Form 1040 line 18 for the 2013 tax year and is included in total income. It also affects AGI, which determines eligibility for the Earned Income Credit and other above-the-line adjustments.

What is the difference between Schedule F and Schedule C for farmers?

Schedule F reports income from farming operations such as crop production and livestock raising. Schedule C is used for income from agricultural services — soil preparation, farm labor, veterinary services, or farm management provided for a fee — and for income from breeding or caring for pets.