Farmers who have 2/3 income from farming are exempt from making estimates. Is gross before deductions? Do they look at the forms to determine, or the bottom line. Farmers gross can be large with profit being small or not at all, but there may be capital gains, or spouse may work. The farmers guide seems to me to say gross (before deductions), is this correct? Then there is a MO situation. They seem to give the same estimated exemption, but I think they are determining it on gross on the MO40 (from adjusted Federal gross), not gross before deductions? MO is going back to 2008 and picking up estimated penalties that they just didn't send out years ago when it should have been mailed. Clients aren't happy, mainly because of the years gap. Anyone having experience with this, and can you clear it up for me? Thanks
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The 2/3 requirement is for gross farming income vs. gross income from all sources. Expenses are not taken into account at this point.
As far as MO goes, the standard is the same but I read it to be MO source income in the calculation. I would be sure to compute the qualifiers on any notice received from MO as I have had a couple of notices from them that have been off-the-wall attempts to collect tax when none was due this year.
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