Are CRP payments taxable? Form CCC-1099-G

mao2bs
mao2bs Member Posts: 2 Newcomer
in Income

I received a CCC-1099-G from the USDA FSA for CRP Annual Rental payments (not really rental). From what I read online, it appears I need to enter the details on the Schedule F. I am not self-employed and don't have a farm business. I selected cash accrual even though we don't have book records. I got to the page where it asks me to enter in the CCC-1099-G payment amount. Then the next question is "Enter the taxable portion of your agricultural program payments." I've read "Unless the enrolled CRP taxpayer is receiving Social Security retirement or disability benefits, CRP “annual rental payments” are includible in net income from self-employment, subject to self-employment tax." We are not self-employed and don't have a farm business.

Do I enter in nothing or the full amount of my payment in the taxable income section? I wasn't sure if we are taxed on the CRP income since we are not a farm business.

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Answers

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 222 image

    It sounds like you have determined that your payment is taxable income for you. So, yes, the proper place to report your CCC-1099-G for agricultural payments is on Schedule F, even if you don't have an official form or business.

  • solartony
    solartony Member Posts: 1 Newcomer

    i have a ccc-1099-G from the USDA ...it has boxes 4, 7, 8 ... where do i enter these ?

  • JanaA
    JanaA FreeTaxUSA Agent Posts: 175 image
    Hello solartony! Here is a breakdown of how to handle each box on your CCC-1099-G:

    Box 7 is your agricultural program payments, which includes your CRP annual rental payments. This is the amount you enter on Schedule F, lines 4a and 4b (the total payment on 4a and the taxable portion on 4b). Since CRP payments are generally fully taxable, you would enter the full amount from Box 7 in both fields unless you have a specific exclusion that applies.

    Box 4 is federal income tax withheld. You don't enter this on Schedule F. This will be entered as an Estimated Tax payment in the Misc section.

    Box 8 is simply a checkbox on the form that indicates the amount in Box 2 (if any) relates to a trade or business. Since your CCC-1099-G doesn't appear to have a Box 2 amount, Box 8 doesn't require any separate entry on your part.

    For additional information, please contact our support team while signed into your account. They will have access to your account information which will allow them to give you a more personalized response.

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