Income Tax Resources for Farmers

It may seem really early to be thinking about income taxes but that time of year will be her before you know it. I want to remind you all that University of Missouri Extension will have several resources that can assist you in your income tax responsibilities. Let’s discuss them in a little more detail.

~ Farmer’s Tax Guides have been around for many years. They are an excellent reference booklet for farmers as well as tax preparers that you can utilize throughout the year, not just at tax time. This booklet is written so that it is easy for anyone to understand. It is online but since it is a large file it can take a long time to download.

~ 1099 & 1096 forms have been utilized for quite a few years now as well. If you pay someone over $600 in a year that is not your employee but an independent contractor, then you are required to send them a 1099
form. Examples of this are dozer work, custom combining or haying, cash rent and others. Keep in mind the difference between an employee and independent contractor relates to whether or not they have their own
equipment/machinery and how you pay them (per job vs. per unit of time. 1096’s are the form that summarizes the 1099’s whether you send out 1 or 100.

~ income tax forms are now online so you can find them at www.irs.gov. If you don’t have access to a computer we can assist you in the county office.

All of these resources should be available in your county offices by December 15th. There is a small charge for 1099 and 1096 forms but the Farmer’s Tax Guides are free. Stop by anytime then on for those or farm record books for 2012.

(by Joe Koenen, Ag Business Specialist, Putnam County)