Are there any special provisions related to estimated tax payments for farmers and fishermen?

Answer:

Calendar year farmers and fishermen. If you're a calendar year taxpayer and at least two-thirds of your gross income for 2023 or 2024 is from farming or fishing, you have only one payment due date for your 2024 estimated tax, January 15, 2025. The due dates for the first three payment periods don't apply to you. See Farmers and Fishermen in Publication 505, Tax Withholding and Estimated Tax.

You can figure out the penalty for failure to pay estimated taxes, which includes failing to pay enough estimated taxes, for 2024, based on the difference between the amount of 2024 withholding plus estimated tax you paid by January 15, 2025, and the smaller of:

  1. 66 ⅔% (rather than 90%) of your 2024 tax, or
  2. 100% of the tax shown on your 2023 return.

You won't owe an estimated tax penalty if the tax shown on your 2024 return, minus your 2024 withholding, is less than $1,000.

If you're a calendar year taxpayer and you file your 2024 Form 1040 by March 3, 2025, you don't need to make an estimated tax payment if you pay all the tax you owe at that time.

Fiscal year farmers and fishermen. If you're a farmer or fisherman, but your tax year doesn't start on January 1, you can either:

  • Pay all your estimated tax by the 15th day after the end of your tax year, or
  • File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year.

Note: If the due date for making an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that's not a Saturday, Sunday, or legal holiday.

 

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