Let USDA Help Prepare You for Tax Season

If you participate in USDA programs, including our farm loan and conservation programs, it’s time to start preparing for tax season. It is important to not overlook USDA payments when calculating your taxes. USDA issues documentation for your taxes, including 1098 forms for USDA farm loans and 1099 forms for program payments.

Whether you are filing your taxes on your own or working with a professional accountant or tax preparer, there are online resources at farmers.gov to help you prepare to file. Our Taxes for Farmers and Ranchers page has links to download your tax forms, tips on finding a tax preparer, on-demand webinars, and much more.

Tax forms for USDA payments are available from the self-service portal on your farmers.gov account.  USDA issues 1099 forms for:

• Conservation programs administered by the Farm Service Agency and Natural Resources Conservation Service (such as the Conservation Reserve Program and Environmental Quality Incentives Program)
• Crop disaster payments
• Assistance for distressed borrowers, including through Section 22006 of the Inflation Reduction Act.

Additionally, USDA issues 1098 forms for USDA farm loans, if the farmer is classified as an individual and if the farm ownership or operating loan is secured by real estate. USDA technical assistance is free and creates no tax implications.

As you are preparing your taxes, here is a checklist of things to do or consider:

• Gather all 1098, 1099 and other tax forms issued by USDA.
• If you have a farm loan, visit the self-service portal on farmers.gov to view your loan information, history, and payments.
• Crop insurance proceeds must be included in your farm income.
• Farmers can deduct certain conservation-related expenses. According to the IRS, you may deduct up to 25 percent of your gross farm income for conservation expenses.
• Keeping good expense records will help you and your tax preparer determine the tax deductions you may claim. 

Once you are ready to file, the tax resources page has tools to help you through the process on your own or with a preparer. The Tax Estimator Tool is an interactive spreadsheet that producers can download to estimate tax liability. Producers can also access helpful articles and websites and request copies of tax forms. 

For more information on filing taxes for your operation, view the IRS Farmer’s Tax Guide.  USDA cannot and does not provide tax advice but wants you to be aware of options that may help manage your tax liability. Please visit farmers.gov/taxes and consult with your tax professional to plan and manage any tax liabilities related to your USDA program payments.

Kathryn Fidler is a USDA public affairs specialist.