1-27 FB Farmer Tax Relief

A tax break for farmers. I’m DS

The old cliché…nothing’s sure but death and taxes rings around this time of year but there may be good news. As farmers prepare to file their taxes for 2010 - there's something university Tax Specialist Gary Hoff says they need to know. He says changes in the tax code will impact tax documents created by those who are self employed - like farmers. “This is one of the good things that comes out of the tax legislation this year. If you’re self employed, you pay your own health insurance. You can now reduce your self-employment income by that amount. You’re going to be saving up to 15.3% of the cost of that health insurance. The deduction itself will be on the front of the 1040 but you’ll enter that same amount on line 3 of the form SE so that it reduces the amount you pay the self employment tax on it. This is available for 2010 and only 2010 because it’s not specified on that SE form. The form was produced before the law was changed.”