Generating Schedule J in ProConnect Tax

Below, you'll find information about generating Schedule J, Income Averaging For Farmers and Fishermen.

Use Schedule J (Form 1040) to elect to figure the current year's income tax by averaging, over the previous 3 years (base years), all or part of this year's taxable income from farming or fishing. This may give a lower tax if this year's farming or fishing income is high, and taxable income for one or more of the base years was low.

Before you start:

• This election is possible even if the taxpayer didn't engage in farming or fishing during any of the base years.
• This election is possible even if the taxpayer's filing status was different in the base years.
• This election doesn't apply when figuring alternative minimum tax (Form 6251).
• This election doesn't require re-computation of returns of minor children who used the taxpayer's tax rates in the base years.

To generate Schedule J in the program:

1. From the Input Return tab, go to Taxes ⮕ Other Taxes ⮕ Schedule J, Recapture, Other Taxes.
2. Locate the Income Averaging for Farmers and Fisherman section. 
3. Enter any applicable fields.