F - Farm Income

Tax Schedule F on Form 1040 is used by farmers or ranchers in the United States for reporting farm income and expenses. This form is necessary for taxpayers who operate a farm as a sole proprietorship. Schedule F allows them to calculate and report their net farm profit or loss, which then gets included on their Form 1040, the individual income tax return. It covers various types of farm income, including selling livestock, produce, grains, and other products, and allows for the deduction of farm-related expenses such as feed, fertilizer, farm equipment, and other operational costs. The net result impacts the taxpayer's overall taxable income.