Filing taxes can be confusing and stressful at the best of times. With daunting rules and laws about production, ranching and grazing on Tribal reservations, as well as jurisdictions and fractionalized lands, taxes can prove even more challenging for Tribal producers.

Resources can make this tax season easier and help prepare for the future, as taxes come around each year.

Forms

Let’s dive into it. To start, what types of forms might one need?

• Schedule F ( Form 1040) is the form to fill out to report regarding income and expenses from on a farm or ranch. This provides clear guidance on the individual’s total taxable income.
• Form 4562 is the form to fill out for depreciation and amortization, which is how the government assesses the worth of a good over its lifetime.
• Form 1099-MISC is used to report various types of income other than wages, salaries, and tips. For a Form 1099-MISC, if someone recieves funds or services from certain U.S. Department of Agriculture (USDA) programs, they might receive this form.
• Anyone who receives a farm loan through the USDA, should log into the self-service portal on farmers.gov to view their loan information and history.

USDA programs and taxes

Those enrolled in certain USDA programs will receive a Form 1099. This includes conservation programs administered by the Farm Service Agency and Natural Resources Conservation Service, such as the Conservation Reserve Program and Environmental Quality Incentives Program.

Additionally, crop disaster payments, assistance for distressed borrowers, and the market facilitation program will also receive a Form 1099.

Assistance with a form 1099 is available online here and the USDA additionally has a page for guidance for farmers and ranchers

Resources specific to Indian Country

Tribal members farming or ranching on trust lands may qualify for special exemptions to some filing requirements related to “income derived from the land.”

More information can be found at IRS Publication 5424 Income TAX Guide for Native American Individuals and Sole Proprietors.

Tribal producers are highly encouraged to consult a tax professional concerning their specific situation. The Indigenous Food and Agriculture Initiative, alongside the University of Arkansas, developed a tax and asset training through the agriculture, finance, and asset protection (AgFTAP) that dives into the specifics on best practices and tax preparation and filing specific to Tribal producers.

This program serves as an education tool, providing information and training courses for a broad range of topics such as tax returns, business planning, and managing liabilities. Additionally, it can inform producers on filing, records, forming entities, agricultural income, and special tax rules for agriculture. Access the training on IFAI’s website: indigenousfoodandag.com/policy-research.

For any questions regarding the resources, please contact agpolicy@uark.edu.