Schedule F (Form 1040) 2019: Profit or Loss From Farming

IRS Schedule F (Form 1040) for 2019 is used by self-employed individuals engaged in farming to report farm profit or loss to the Internal Revenue Service. Farmers attach this schedule to their 1040 US Individual Income Tax Return to capture all agricultural income and deductible farming expenses for the year.

Late Filers

Farmers who missed the April 15, 2020, deadline can still file the 2019 Schedule F to stop the failure-to-file penalty from accruing each additional month.

Multiple Income Sources

Schedule F accommodates crop sales, livestock proceeds, cooperative distributions, agricultural program payments, and custom hire income on a single self-employment income return.

Itemizing Deductions

Farmers with qualifying expenses — including feed, fertilizers, labor hired, and depreciation — may reduce taxable farm income by itemizing deductions directly on Schedule F.

Claiming 2019 Credits

Self-employed farmers qualifying for applicable 2019 credits, including fuel tax credits on line 8, must file Schedule F with supporting schedules attached.

IRS Compliance

Filing Schedule F creates a compliance record with the IRS, which the agency may require before approving any payment plan or outstanding balance resolution.

Citizens Abroad / Military

U.S. farmers residing abroad or in the military with domestic operations may still be required to file Schedule F and report all 2019 farm income.

Follow the steps below to accurately complete your 2019 Schedule F; note that steps 3, 5, and 6 include rules and figures specific to this tax year.

1. Gather Your Documents Before Starting

Collect all 2019 farm income records before starting, including Form(s) 1099-PATR, CCC loan statements, crop insurance proceeds notices, sales records for livestock and produce, and receipts for all deductible farming expenses.

2. Choose the Correct Accounting Method [2019 Only]

On line C of Schedule F, select either the cash or accrual accounting method. Cash-method farmers complete Parts I and II; accrual-method farmers complete Parts II and III, and only line 9 of Part I. Do not switch methods between years without IRS approval, as doing so requires a separate change-of-accounting-method request.

3. Report All Income on the Correct Lines

Report resale livestock on line 1a, raised produce on line 2, cooperative distributions on line 3a, and program payments on line 4a. Enter CCC loans on line 5, crop insurance on line 6a, and custom hire on line 7. Report other income, including fuel credits, on line 8. For 2019, crop insurance may be deferred to 2020 via line 6c.

4. Calculate Adjusted Gross Income (AGI)

Add all Part I income amounts to reach gross income on line 9, then subtract farm expenses on line 33 to arrive at net farm profit or loss on line 34. Net profit carries to Schedule 1, affecting AGI, determining self-employment tax on Schedule SE, and determining eligibility for above-the-line deductions.

5. Choose Your Deductions and Apply Expense Rules [2019 Only]

Complete Part II to claim allowable farm expenses: car and truck costs (line 10), chemicals (line 11), depreciation and Section 179 (line 14), feed (line 16), fertilizers and lime (line 17), labor hired (line 22), and other costs through line 32f. For 2019, the Section 179 limit was $1,020,000 with 100% bonus depreciation on qualifying property after September 27, 2017.

6. Claim the 2019 Fuel Tax Credit [2019 Only]

Farmers who used gasoline, diesel, or other taxable fuels for off-highway farming in 2019 may claim a fuel tax credit by entering the amount on line 8 and attaching Form 4136. See the 2019 Form 4136 instructions for rates.

Missing Schedule F (Form 1040) or Tax Records for 2019?

Late filers often lack original 2019 farm income documents, but IRS and Social Security Administration records can help reconstruct the information needed to file an accurate Schedule F return. Official transcripts should always be used in place of estimated figures.

IRS Wage & Income Transcript

This free transcript lists all income reported to the IRS by employers, financial institutions, and cooperatives for 2019 and is available through IRS Get Transcript at IRS.gov.

IRS Account Transcript

The IRS account transcript shows estimated tax payments received, penalties applied, and any adjustments made to the 2019 tax account, making it useful for reconciling discrepancies in the outstanding balance.

Social Security Administration

The Social Security Administration can provide wage records for farm employees when a 2019 W-2 is missing, particularly for labor hired and reported on IRS Form 943 or Form 941.

Contact Prior Employers

If a 2019 W-2, 1099-PATR, or other income document is missing, contact the issuing employer or cooperative directly to request a duplicate copy or a corrected form.

Do not estimate any income figures; use IRS transcripts to match records exactly and reduce the likelihood of follow-up notices from the Internal Revenue Service.

These are the most frequent errors causing IRS delays, rejected returns, or missed credits on 2019 Schedule F returns.

• Using the wrong tax year form — Submitting any Schedule F version other than the official 2019 form causes automatic rejection; always download and use the correct year's PDF form.
  
  
• Missing the 2019 fuel tax credit on line 8 — Farmers who used off-highway fuel for farming purposes but did not attach Form 4136 will miss the 2019 federal fuel tax credit entirely.
  
  
• Wrong accounting method selected on line C — Selecting Cash when the farm uses accrual, or vice versa, will cause you to complete the wrong parts of Schedule F and misreport gross income.
  
  
• Applying crop insurance deferral incorrectly — Farmers who deferred 2018 crop insurance proceeds must report the deferred amount on line 6d in 2019; omitting this amount will underreport gross farm income.
  
  
• Treating CCC loan proceeds as non-taxable — CCC loans elected on line 5a are taxable in the year received and must not be omitted from gross farm income reported on line 9.
  
  
• Assuming a refund is still available — The three-year refund window for 2019 returns closed on April 15, 2023, for most filers, meaning any unclaimed refund has likely been permanently forfeited.
  
  
• Missing or incorrect Social Security numbers — Omitting or entering an incorrect Social Security Number or Employer ID Number on the form header will cause processing delays or outright IRS rejection.
  
  
• Unsigned return — An unsigned 2019 Form 1040 with Schedule F is considered invalid by the IRS and will not be processed until the return is properly signed.
  
  
• Missing attachments — Omitting Form 4562 for depreciation, Form 4136 for fuel credits, or Form 4797 for breeding livestock will cause the IRS to disallow the related items.
  

What is IRS Form 1040 Schedule F (2019) used for?

IRS Schedule F (Form 1040) for 2019 is used by self-employed individuals to report profit or loss from farming. Farmers attach it to their 1040 US Individual Income Tax Return to report agricultural income — including livestock sales, crop proceeds, and cooperative distributions — and claim all ordinary farm expenses.

Can I still file a 2019 Schedule F tax return?

Yes, a farmer can still file the 2019 Schedule F after the April 15, 2020, deadline. Filing now stops the failure-to-file penalty if taxes are owed. However, the three-year refund window for most 2019 filers closed April 15, 2023, so a refund is likely no longer available.

Who is required to file Schedule F for 2019?

Any self-employed individual who operated a farm during 2019 — raising crops, livestock, poultry, or other agricultural products — must file Schedule F and attach it to Form 1040 or Form 1040-SR. Farmers using accrual accounting must also complete Part III in addition to Parts I and II.

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

Schedule F covers farm income from crops, livestock, and agricultural products. Schedule C applies instead to income from agricultural services — such as soil preparation, veterinary work, or farm management — provided for a fee, and to income from breeding or caring for pet animals.

How does Schedule F affect self-employment tax?

Net farm profit from Schedule F flows to Schedule 1 and is included in self-employment income. Farmers then calculate self-employment tax on IRS Form 1040 Schedule SE, which covers Social Security and Medicare tax at the combined 15.3% rate applied to net self-employment earnings.

What farm expenses can I deduct on the 2019 Schedule F?

Deductible 2019 farm expenses include car and truck costs, chemicals, conservation expenses, depreciation, and Section 179, feed, fertilizers and lime, freight, fuel, insurance, interest, labor hired, pension plans, rent or lease, repairs, seeds, storage, supplies, taxes, utilities, and veterinary costs.

What income types must be reported on the 2019 Schedule F?

All 2019 farm income must be reported, including livestock and produce sales (lines 1c, 2), cooperative distributions (Form 1099-PATR, line 3b), agricultural program payments (line 4b), CCC loans (lines 5a, 5c), crop insurance (line 6b), deferred 2018 insurance (line 6d), and custom hire income and fuel credits (lines 7, 8).

What happens if I do not file Schedule F for 2019?

Failing to file the 2019 Schedule F triggers a 5% failure-to-file penalty per month, up to 25%, plus a separate 0.5% failure-to-pay penalty and daily interest. The IRS may also assess a substitute return that disallows deductions, producing a significantly higher tax liability.