In response to our blog post from yesterday, we had a reader make the following comment:
“Good morning Paul, I am a farmer in Iowa and unless I am wrong farmers must file their taxes by March 1st and wage earners by April 15. I don’t understand why there is a different due date for these two groups. Can you please explain this to me?”
This is a good question that can be confusing for most farmers. There is only one due for all individuals and that is April 15 (however, if you are overseas it can be later and some individual do not file on a calendar year basis). Farmer’s due date is April 15; however, if they file AND pay by March 1 they are not required to make any estimated income tax payment on January 15.
This is why this is mistakenly called the Farmer’s due date. It is only a due date to get out of any estimated tax underpayment penalty. All other income tax related due dates such as IRA contributions, pension plan contributions, etc. remain April 15.
As we have mentioned in many posts before, most farmers should consider not filing by March 1 and simply make an estimated tax payment on January 15. In most cases, they will be better off economically and emotionally since trying to get a complicated farmer’s tax return done by March 1 is getting more impossible every year.
Also, Treasury Secretary Mnuchin formally announced today that they are planning on some type of extension of the April 15 due date. However, there are no firm details yet. We will keep you posted.
