It's Tax Season: Things to Remember for your Farm

Have you done your taxes yet?

Below is information from the Farm Management Newsletter sent out by Virginia Cooperative Extension on filing taxes by Gordon Groover, Extension Economist, Department of Agricultural & Applied Economics, Virginia Tech.

Income taxes and related items:

1. The “Fiscal Cliff” set back the IRS in finalizing the rules and regulations for the 2012 tax filings. The federal filing deadline for all farmers has been moved to April 15, 2013.

2. Virginia Income Taxes: In response to recent action by the IRS, the Virginia Department of Taxation is providing relief from the estimated tax underpayment penalty for farmers, fishermen, and merchant seamen who are unable to file and pay their 2012 individual income taxes by the March 1 deadline. In order to receive an automatic waiver of the estimated tax underpayment penalty, farmers, fishermen and merchant seamen must file their returns and pay the entire tax due by April 15, 2013. For more information, see Tax Bulletin 13-2 (P.D. 13-12).

3. Need to find out more information about federal taxes? The Farmers Tax Guide IRS Publication 225 is online and can be found at: http://www.irs.gov/pub/irs-pdf/p225.pdf. 

4. Decide how much you’ll contribute to an IRA for the 2012 tax year and set goals for 2013. If you use a certified financial planner (CFP), consider his/her usefulness in helping plan for retirement, college, insurance coverage, and other items. Visit the web site for the CFP organization to get information on services and standards required for planners. You can search for a CFP in your area at http://www.cfp.net/.

5. Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

·         56.5 cents per mile for business miles driven.

·         24 cents per mile driven for medical or moving purposes.

·         14 cents per mile driven in service of charitable organizations.

·          For details see: http://www.irs.gov/pub/irs-drop/n-12-72.pdf

Virginia’s Sales Tax: How you file is changing. Quarterly filers will be required to file and pay Sales and Use Tax (ST-9 and ST-9CO) electronically beginning with the July - September 2013 return, due October 20, 2013. Returns and payments can be filed electronically using eForms, Business iFile or Web Upload.