Tax Tips

IRS information for tax filing topics that uniquely affect rural residents and workers.

Special requirements exist for the following taxpayers:

• Fishermen and farmers
• Small business owners and gig economy workers
• Those recovering from a natural disaster

Most of these situations require more information than a regular W-2 filing. It’s important that taxpayers not only file timely but take advantage of certain tax law and additional benefits.

Fishermen and Farmers:

You are in the business of farming if you cultivate, operate, or manage a farm for profit, either as owner or tenant. Fishermen and farmers are required to file specific schedules that can often be overwhelming even for experienced taxpayers. Filers can use Publication 225, Farmer’s Tax Guide, to guide them when determining tax law related to farming. The following publications and forms can be used when filing a tax return:

•  Form 943, Employer’s Annual Tax Return for Agricultural Employees
• Schedule F (Form 1040 or 1040-SR), Profit or Loss From Farming
• Schedule J (Form 1040 or 1040-SR), Income Averaging For Farming and Fisherman
• Publication 946, How To Depreciate Property

Small Business Owners and Gig Economy Workers:

Rural workers often either work in or own businesses in seasonal fields. Jobs within the gig economy can range from shoveling snow to delivery services. Whether one is employing these types of workers, or performing the tasks themselves, tax preparation can be complicated. Small business owners can use Publication 334, Tax Guide for Small Business (For Individuals Who Use Schedule C) to help them when filing. The attached publications can be used when filing a tax return and can be printed and shared in your place of business:

• Publication 5504, Free Small Business Virtual Tax Workshop
• Publication 5369, Gig Economy and your Taxes: Things to Know

Recovering from Natural Disasters:

When experiencing natural disasters, filing your taxes isn’t usually the first item on your list. The IRS makes finding up to date information on extensions and other IRS benefits due to natural disasters easy. IRS.gov offers the following resources:

• Disaster Assistance and Emergency Relief for Individuals and Businesses
• Check out how Taxpayers should include financial safety in their disaster preparedness plans
• IRS.gov On-line Tools and Resources

Don’t Miss out on Important Credits:

The attached publications can be displayed or handed out in your place of business.

• Publication 5534, An Overview of the 2021 Advanced Child Tax Credits Payments (Flyer)
• Publication 3524, EITC Eligibility Checklist Poster

You can view more IRS messaging on its social media platforms:

·       Twitter: @IRSNews, Spanish, Vietnamese, Russian, Korean, Haitian Creole & Chinese, @IRSSmallBiz
·       YouTube: IRS Videos Multilingual, IRS Videos & IRS Videos ASL 
·       Facebook: IRS & IRS en español
·       Instagram: @IRSnews
·       LinkedIn: LinkedIn
·       E-News Subscriptions: e-News subscriptions 

 For more information about ways you can partner with the Internal Revenue Service https://www.irs.gov/ , such as the free tax preparation program - the Volunteer Income Tax Assistance/Tax Counseling for the Elderly (VITA/TCE) program see the IRS website https://www.irs.gov/individuals/irs-tax-volunteers .