What Schedule F (Form 1040) (2019) Is For

Schedule F (Form 1040 or 1040-SR) is used to report profit or loss from farming operations (IRS Instructions for Schedule F, 2019). Farmers, ranchers, and agricultural businesses operating as sole proprietors must file Schedule F to report income and deductible expenses from farming activities, including cultivation of land, raising livestock, poultry, fish, fruit growing, and truck farming. The schedule attaches to Form 1040, 1040-SR, 1040-NR, 1041 (for estates and trusts), or 1065 (for partnerships), and the resulting net farm profit or loss flows to your individual income tax return and may be subject to self-employment tax on Schedule SE.

When You’d Use Schedule F (Form 1040) for 2019 (Late or Amended Filing)

You would file a late or amended Schedule F for 2019 if you failed to report farm income or expenses by the original April 15, 2020 deadline, received an IRS notice about unreported farm income, discovered errors on your originally filed return, or have withheld taxes that you want to claim as a refund. If you're filing late and owe taxes, you may face penalties and interest including a failure-to-file penalty (typically 5% of unpaid tax per month, up to 25%) and a failure-to-pay penalty (IRS Failure to File Penalty, IRS.gov). If you're owed a refund for 2019, be aware that you generally have three years from the original return due date—until April 15, 2023 in most cases—to file and claim that refund, though this deadline may already have passed (IRS Filing Past Due Tax Returns, IRS.gov). The IRS may have sent CP2000 notices, balance due notices, or substitute returns if income was reported by third parties but you didn't file. Before filing, request your wage and income transcripts from the IRS to verify all income sources and withholdings reported for 2019 to ensure accuracy and avoid further delays.

Key Rules or Details for 2019

For tax year 2019, several provisions applied specifically to farmers. The standard mileage rate for business use of vehicles was 58 cents per mile (IRS Instructions for Schedule F, 2019). Small business taxpayers with average annual gross receipts of $26 million or less over the prior three tax years were no longer required to capitalize costs under Section 263A and could use the cash method of accounting more easily. Farmers could claim up to a 20% deduction for qualified business income under Section 199A, subject to limitations based on taxable income, W-2 wages, and qualified property. The excess farm loss limitation rules did not apply in 2019, though the excess business loss limitation under Section 461(l) did apply to noncorporate taxpayers. Net operating losses (NOLs) attributable to farming could be carried back two tax years, unlike other NOLs which could no longer be carried back after 2017 tax law changes (IRS Instructions for Schedule F, 2019). The special depreciation allowance was available for certain property, and farmers could elect to expense up to $1,020,000 of qualified property under Section 179 for 2019. Crop insurance proceeds and federal crop disaster payments could be deferred to the following tax year if certain conditions were met.

Step-by-Step (High Level)

To file a late or amended Schedule F for 2019, follow these steps:

• Gather records and transcripts. Request your 2019 wage and income transcript (Form W-2, 1099-MISC, 1099-G, CCC-1099-G) from IRS.gov or by calling 800-908-9946 to verify all income sources and withholdings. Collect receipts, invoices, bank statements, and records documenting farm income and expenses for 2019.

• Use the correct-year forms. Download the 2019 version of Schedule F, Form 1040 (or 1040-SR), and any other required schedules (Schedule SE for self-employment tax, Form 4562 for depreciation) from IRS.gov/PriorForms. Do not use current-year forms for a prior-year return.

• Complete Schedule F and Form 1040. Report all farm income on Part I (cash method) or Part III (accrual method) of Schedule F. Deduct allowable farm expenses on Part II. Transfer the net profit or loss to Form 1040, line 18 (or the appropriate line for your form version). Complete Schedule SE if your net farm profit exceeds $400.

• Attach required schedules and forms. Include all supporting schedules, forms, and statements. If you're correcting a previously filed return, use Form 1040-X (Amended U.S. Individual Income Tax Return) and attach the corrected Schedule F with an explanation of changes.

• Mail or e-file. For late original returns, mail to the IRS address for your state listed in the Form 1040 instructions, or use tax software if available for e-filing prior-year returns. For amended returns, Form 1040-X for 2019 can be filed electronically or by mail (IRS About Form 1040-X, IRS.gov). Keep copies of all submitted documents, proof of mailing, and tracking information.

• Keep complete records. Retain copies of your return, supporting documentation, and proof of filing for at least three years from the filing date or two years from when tax was paid, whichever is later.

Common Mistakes and How to Avoid Them

• Misclassifying farm activities. Don't report hobby farming or activities not engaged in for profit on Schedule F; these belong on Form 1040, Schedule 1, line 8z as other income with limited deductions. Ensure your farming operation shows a profit motive and material participation.

• Incorrect accounting method. Cash method farmers must report income when received and expenses when paid, not when incurred. Accrual method farmers (including farming syndicates) report income when earned and expenses when incurred. Farming syndicates cannot use the cash method (IRS Instructions for Schedule F, 2019). Don't mix methods inconsistently.

• Capitalizing costs incorrectly. Small business taxpayers with average gross receipts of $26 million or less don't need to capitalize costs under Section 263A. Larger operations or those producing property with a preproduction period over two years must capitalize indirect costs properly or elect to deduct preproductive expenses with special rules. Review IRS Publication 225, Chapter 6 for guidance.

• Prepaid expense deduction limits. If prepaid farm supplies (feed, seed, fertilizer) exceed 50% of other deductible farm expenses and you're a cash-method taxpayer, the deduction may be limited. Only the portion up to 50% is deductible in the payment year; the excess is deducted when consumed (IRS Instructions for Schedule F, 2019).

• Omitting or duplicating income. Verify all income sources using wage and income transcripts, including Forms 1099-MISC, 1099-G, CCC-1099-G, and 1099-PATR. Report CCC loan proceeds only once—either when received (if elected) or when the loan is forfeited. Don't double-report crop insurance proceeds or cooperative distributions.

• Failing to file Schedule SE. If net farm profit on Schedule F, line 34, exceeds $400, you generally must file Schedule SE and pay self-employment tax. Omitting this results in underpayment of Social Security and Medicare taxes and potential penalties.

What Happens After You File

After submitting your late or amended Schedule F for 2019, the IRS typically takes 8 to 16 weeks to process paper returns and 3 weeks for electronically filed returns (IRS Filing Past Due Tax Returns, IRS.gov). For amended returns on Form 1040-X, processing takes approximately 8 to 12 weeks, and you can check status online using the "Where's My Amended Return?" tool on IRS.gov after three weeks (IRS Where's My Amended Return, IRS.gov). If you owe additional tax, you'll receive a notice with the balance due including penalties and interest calculated from the original due date. Pay immediately to stop further interest accrual, or if you can't pay in full, apply for an installment agreement online or by submitting Form 9465 to set up monthly payments (IRS About Form 9465, IRS.gov). If the IRS owes you a refund and you filed within the three-year statute of limitations (generally April 15, 2023, for 2019 returns), you'll receive a refund check or direct deposit, though refunds on late returns may be offset against other tax debts. The IRS may send additional notices if they need more information or if there are discrepancies, so respond promptly to all correspondence. If you disagree with any IRS adjustment or penalty, you have appeal rights explained in IRS Publication 5 (Your Appeal Rights and How to Prepare a Protest If You Don't Agree) and can request penalty abatement for reasonable cause.

FAQs

What penalties will I owe for filing Schedule F for 2019 late?

If you file late and owe tax, the failure-to-file penalty is 5% of the unpaid tax for each month or partial month the return is late, up to 25% maximum. The failure-to-pay penalty is 0.5% per month of unpaid tax. If both apply simultaneously, the failure-to-file penalty is reduced by the failure-to-pay amount (IRS Failure to File Penalty, IRS.gov). Interest accrues on unpaid tax and penalties from the April 15, 2020 due date until paid in full. First-time penalty abatement may be available if you have a clean compliance history for the prior three years.

Can I still get a refund if I file Schedule F for 2019 now in 2025?

Unfortunately, the three-year statute of limitations for claiming a 2019 refund likely expired on April 15, 2023 (unless you had an extension). You must file within three years from the original return due date or two years from when you paid the tax, whichever is later (IRS Time You Can Claim a Credit or Refund, IRS.gov). If the deadline has passed, any withholding or credits for 2019 cannot be recovered. However, if you filed an extension or the return was timely filed, different rules may apply.

Do I need transcripts before filing a late Schedule F?

Yes, it's highly recommended. Request your 2019 wage and income transcript from IRS.gov or by calling 800-908-9946 or submitting Form 4506-T. This transcript shows all Forms W-2, 1099-MISC, 1099-G, and other income documents reported to the IRS by third parties. Comparing your records against the transcript ensures you report all income accurately and claim all withholdings, preventing future notices and allowing proper reconciliation (IRS Get Your Tax Records, IRS.gov).

How do I know if I should file an original late return or an amended return?

If you never filed a 2019 Form 1040 with Schedule F, you're filing an original late return—use the 2019 versions of Form 1040 and Schedule F. If you already filed a 2019 return but need to correct or add Schedule F or change farm income or expenses, you must file Form 1040-X (Amended U.S. Individual Income Tax Return) with the corrected Schedule F attached (IRS About Form 1040-X, IRS.gov). Form 1040-X can be filed electronically or on paper.

Should I also amend my state return if I'm filing a late or amended Schedule F?

Most states base their income tax on your federal return, so changes to federal farm income or deductions will affect your state tax liability. Check your state's tax agency website or consult a tax professional. Many states require you to file an amended state return when you file a federal amendment, typically using the state's equivalent of Form 1040-X. Deadlines and procedures vary by state.

What forms do I need besides Schedule F when filing for 2019?

In addition to Schedule F, you'll need the 2019 Form 1040 (or 1040-SR if you were 65 or older). If you have net farm profit over $400, file Schedule SE to calculate self-employment tax. If you claimed depreciation, Section 179 deductions, or placed assets in service in 2019, attach Form 4562. Other schedules may include Schedule J (for income averaging), Form 4797 (for sales of farm property), Form 4835 (for farm rental income), or Form 6198 (for at-risk limitations). Use only 2019 versions of all forms, available at IRS.gov/PriorForms (IRS Instructions for Schedule F, 2019).

What if I receive a notice after filing my late Schedule F?

The IRS may send notices requesting additional information, proposing changes, or assessing additional tax, penalties, or interest. Read the notice carefully, check the accuracy of the IRS's information, and respond by the deadline shown (usually 30 days). If you agree, pay the amount or set up a payment plan. If you disagree, submit a written explanation with supporting documentation or request an appeal. Don't ignore IRS notices; they can lead to liens, levies, or collection enforcement actions (IRS Penalty Relief, IRS.gov).