What SCHEDULE F (Form 1040) (2018) Is For

Schedule F (Form 1040) is the IRS form used to report profit or loss from farming activities operated as a sole proprietorship, single-member LLC, or through certain trusts and estates (2018 Instructions for Schedule F, IRS Publication 225). You must file Schedule F if you operate a farm for income or profit—either as an owner or renter—and report income from cultivating crops, raising livestock, or operating a farm-related business. The net profit or loss calculated on Schedule F flows to your Form 1040 and affects your overall taxable income and self-employment tax obligations (IRS.gov/ScheduleF).

When You'd Use SCHEDULE F (Form 1040) for 2018 (Late or Amended Filing)

You would file Schedule F for the 2018 tax year when addressing unfiled or amended returns in several scenarios. If you never filed your 2018 return, you may need to do so because you received an IRS notice (such as CP59, CP515, or a Substitute for Return notice), discovered unreported farm income, or want to claim a refund within the three-year statute window (refunds for 2018 must generally be claimed by April 15, 2022, or within two years of paying the tax, whichever is later) (IRS Topic No. 308, File an Amended Return). Late filers should act promptly to minimize failure-to-file penalties, which accrue at 5% of unpaid taxes per month up to 25%, plus interest charges (IRS Failure to File Penalty guidance). If you already filed 2018 but need to correct farm income or expenses—such as omitted CCC loans, crop insurance proceeds, or depreciation errors—you would file Form 1040-X along with a corrected Schedule F. Before filing late or amended returns, obtain your IRS tax account transcript and wage and income transcript online at IRS.gov/Transcript to verify what income the IRS already has on record and to reconcile withholdings (IRS Get Transcript page).

Key Rules or Details for 2018

Tax year 2018 marked the first full year under the Tax Cuts and Jobs Act (TCJA), which introduced significant changes affecting farmers. Most notably, the new Qualified Business Income (QBI) deduction under Section 199A allowed eligible farmers to deduct up to 20% of qualified farm income, subject to taxable income thresholds and other limitations (2018 Instructions for Schedule F). The TCJA also introduced a business interest expense limitation under Section 163(j), though certain farming businesses could elect out of this rule (Form 8990, 2018 Instructions for Schedule F). For 2018 only, the excess farm loss limitation rules did not apply, though any disallowed prior-year losses could be deducted in 2018 (2018 Instructions for Schedule F). Small business taxpayers with average annual gross receipts of $25 million or less became exempt from capitalizing costs under Section 263A starting in 2018 (2018 Instructions for Schedule F). Net operating losses (NOLs) for 2018 could still be carried back two years for farming losses specifically, a rule that was later modified (2018 Instructions for Schedule F). These year-specific rules mean that preparing a late 2018 return requires the correct-year form and instructions—not current-year guidance—to ensure accurate treatment of these provisions.

Step-by-Step (High Level)

Step 1: Gather your records and transcripts

Gather your records and transcripts. Start by requesting your 2018 tax account transcript and wage and income transcript from IRS.gov/Transcript or by calling 800-908-9946 to confirm what income and withholdings the IRS already has on file (IRS Topic No. 159).

Step 2: Obtain the correct 2018 forms

Obtain the correct 2018 forms. Download Schedule F (Form 1040) for 2018 and the 2018 instructions from IRS.gov/PriorForms—do not use current-year forms for a prior-year return (2018 Instructions for Schedule F).

Step 3: Complete Schedule F and related schedules

Complete Schedule F and related schedules. Report all farm income (crop sales, livestock, government payments, CCC loans, crop insurance) in Part I and deductible expenses in Part II; attach Schedule SE (Form 1040) for self-employment tax and Form 4562 if claiming depreciation or Section 179 deductions (2018 Instructions for Schedule F).

Step 4: Prepare Form 1040 (or 1040-X if amending)

Prepare Form 1040 (or 1040-X if amending). For an unfiled return, complete Form 1040 (2018 version) and attach Schedule F; for an amended return, use Form 1040-X with a corrected Schedule F and explain the changes (IRS Form 1040-X Instructions).

Step 5: Mail to the correct address

Mail to the correct address. Late returns and amended returns must be mailed to the IRS address specified in the 2018 Form 1040 or 1040-X instructions for your state—note that e-filing is not available for returns older than the current and two prior years (IRS Topic No. 308).

Step 6: Keep copies and proof of mailing

Keep copies and proof of mailing. Retain copies of all forms, schedules, and supporting documents, and send your return by certified mail with return receipt to prove timely filing (IRS Filing Past Due Tax Returns).

Common Mistakes and How to Avoid Them

Using the wrong tax year's form

Always use the 2018 version of Schedule F and instructions—tax law changes mean current forms don't reflect 2018 rules like the first-year QBI deduction or Section 263A exemptions (2018 Instructions for Schedule F).

Failing to obtain transcripts first

File late returns only after reviewing your wage and income transcript to ensure you report all third-party income (Forms 1099, W-2, CCC-1099-G) that the IRS already knows about, avoiding mismatches that trigger audits (IRS Get Transcript guidance).

Incorrectly reporting CCC loans or crop insurance

If you elected to report CCC loan proceeds as income when received, don't also report the forfeited amount on line 5c; similarly, if you deferred 2017 crop insurance proceeds to 2018 under the election, be sure to include them on line 6d (2018 Instructions for Schedule F).

Overlooking required attachments

Attach Schedule SE if you have net farm profit subject to self-employment tax, Form 4562 if you're claiming any vehicle depreciation or Section 179 deductions, and any required explanatory statements for elections (2018 Instructions for Schedule F).

Not paying or arranging payment with the return

File your late return even if you cannot pay in full, but include payment or immediately apply for an installment agreement (Form 9465) online at IRS.gov/PaymentPlans to reduce penalties and interest (IRS Payment Plans guidance).

Missing the refund statute deadline

You generally have three years from the original due date (April 15, 2019, for 2018) to claim a refund, meaning the deadline for 2018 refund claims was April 15, 2022—late filers claiming refunds after that date forfeit the refund (IRS Topic No. 308).

What Happens After You File

Processing timeframes. The IRS typically processes mailed late or amended returns within 8 to 12 weeks, though complex returns or high-volume periods may cause delays; you can check amended return status online at IRS.gov/WMAR after three weeks (IRS Amended Return FAQs).

Notices and correspondence. You may receive notices confirming receipt, requesting additional information, or proposing adjustments—respond promptly to any notice by the deadline stated (usually 30 or 90 days) to preserve your rights (IRS Filing Past Due Tax Returns).

Payment options if you owe. If your late return shows a balance due, the IRS will send a notice with the total including penalties and interest; you can pay online, request an installment agreement using Form 9465 or the Online Payment Agreement tool at IRS.gov, or explore other options like an Offer in Compromise if you cannot pay the full amount (IRS Payment Plans, Form 9465 Instructions).

Penalty relief possibilities. If you have a clean compliance history, you may qualify for first-time penalty abatement (FTA) to remove failure-to-file or failure-to-pay penalties; alternatively, you can request reasonable cause relief by explaining circumstances beyond your control that prevented timely filing (IRS Penalty Relief guidance).

Appealing IRS decisions. If you disagree with an IRS adjustment or penalty, you have the right to appeal; notices will explain your appeal rights and deadlines, and you can request an appeal through the IRS Independent Office of Appeals (IRS Appeals Process, IRS Publication 5).

FAQs

Can I still file a 2018 Schedule F in 2025, and will I face penalties?

Yes, you can file a late 2018 Schedule F anytime—there is no statute of limitations on filing (IRS Filing Past Due Tax Returns). However, if you owe taxes, you will face failure-to-file penalties (5% per month up to 25%) and failure-to-pay penalties (0.5% per month), plus interest compounded daily on the unpaid balance (IRS Failure to File Penalty). If you're owed a refund, you must have filed by April 15, 2022 (three years after the April 15, 2019 due date) to claim it—refunds for 2018 filed after that date are forfeited (IRS Topic No. 308).

How do I get copies of my 2018 farm income documents if I lost them?

Request a 2018 wage and income transcript from the IRS at IRS.gov/Transcript or by calling 800-908-9946, which shows Forms W-2, 1099, CCC-1099-G, and other third-party reported income (IRS Topic No. 159). For personal records like receipts or expenses, contact your cooperative, lender, or vendors for duplicate statements; if you received government payments, contact your local FSA office for CCC loan and program payment records (USDA Farmers.gov).

Do I need to file an amended state return if I'm filing an amended Schedule F?

Yes, in most cases—if your corrected federal Schedule F changes your federal adjusted gross income or taxable income, you should also amend your 2018 state return because most states use federal figures as the starting point (check your state's department of revenue website for amended return procedures and deadlines).

What if I haven't filed for multiple years—should I file 2018 first?

File all missing years in order from oldest to newest, as the IRS may apply losses or credits from earlier years to later years, and completing returns in sequence ensures accurate carryovers and prevents processing delays (IRS Filing Past Due Tax Returns).

If I'm filing late for 2018 and already paid estimated taxes that year, will I get credit?

Yes—report your 2018 estimated tax payments on Form 1040, line 65 (2018 version); the IRS tracks these payments by your Social Security number, and they will be credited against your 2018 tax liability even if you file late (2018 Form 1040 Instructions).

Can I e-file a late 2018 Schedule F, or must I mail it?

You must mail it—the IRS only accepts e-filed returns for the current year and the prior two years, so 2018 returns in 2025 must be paper-filed to the address in the 2018 Form 1040 instructions for your state (IRS Amended Return FAQs).

Will filing a late 2018 return trigger an audit or closer IRS scrutiny?

Filing a late return does not automatically trigger an audit, but ensure accuracy by reporting all income shown on your IRS transcripts and maintaining documentation for all deductions—discrepancies between your return and third-party reports (Forms 1099, W-2, CCC-1099-G) are more likely to prompt IRS inquiries (IRS Publication 556).