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Entering Conservation Reserve Program Tax payments, not subject to Self-Employment, for a Farm activity in Lacerte

by Intuit Updated 1 year ago

There are two methods to enter Farm related Conservation Reserve Program payments not subject to self-employment in Lacerte:

Method 1

  1. Create a new Farm activity in Screen 19, Farm Income (Schedule E / Form 4835) by clicking on the Add button located in the left-hand navigation column.
  2. Enter applicable Farm activity information, including principal product, employee ID number, agricultural activity code, income, and expenses.
  3. In the Farm Income section, enter the Conservation Reserve Program payment amount not subject to Self-Employment in the field titled Conservation reserve payments not subject to SE tax.
  4. Navigate to the Table of Contents by clicking on the Contents tab along the bottom of the input screen, located to the far left.
  5. In the Table of Contents list, click on Screen 14.2, State Tax Refunds, Unemployment Comp.
  6. Enter the Conservation Reserve Program payment amount in the Agricultural payments (7) field.  It will be located in the Federal section, just under the subsection title Agricultural Payments.
  7. To link the amount entered in step 6 to the correct Farm activity, click the down arrow next to the field Farm activity name or number (Ctrl+T).  Click on the Farm activity set up in step 1.
  8. To designate the amount as a Conservation Reserve Program payment, mark the box Agriculture payments are from a conservation reserve program.

Method 2

  1. Create a new Farm activity in Screen 19, Farm Income (Schedule E / Form 4835) by clicking on the Add button located in the left-hand navigation column.
  2. Enter applicable Farm activity information, including principal product, employee ID number, agricultural activity code, income, and expenses.
  3. In the Farm Income section, enter the Conservation Reserve Program payment amount in the field Total conservation reserve program payments [O].
  4. Enter the taxable amount in Taxable conservation reserve program payments [O].
  5. Enter the amount not subject to Self-Employment in the field titled Conservation reserve payments not subject to SE tax.

Both of these methods will fill out Schedule F line 6a and 6b (or Form 4835 lines 3a and 3b if a Farm Rental activity) and Schedule SE line 1b.

Lacerte Tax

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