Updated November 7, 2026. Quick answer: The boxes above Part I of Schedule F are the ones that decide how the rest of the form works: line B picks the activity code, line C locks in cash or accrual, line D takes an EIN only if you have one in your own name, line E sets the passive-loss path, and lines F and G ask about Forms 1099. A wrong answer on line C changes which parts you complete, and line E decides whether the passive-loss rules apply.
Line B and line C: activity code and accounting method
Line B: “On line B, enter one of the 17 principal agricultural activity codes listed in Part IV on page 2 of Schedule F (Form 1040). Select the code that best describes the source of most of your income.” The list is on Part IV codes.
Line C, cash: “In most cases, report income in the year in which you actually or constructively received it and deduct expenses in the year you paid them.” Line C, accrual: “Generally, report income in the year in which you earned it and deduct expenses in the year you incurred them, even if you didn’t pay them in that year.” The parts follow the choice: cash filers use Parts I and II, accrual filers use Part III.
Some farms cannot use cash. The Instructions say “Farming syndicates can’t use the cash method of accounting.” A syndicate is described by two tests, one of which is “More than 35% of the losses during any tax year are allocable to limited partners or limited entrepreneurs.”
Line D: the EIN
Line D has a narrow rule: “Enter on line D the EIN that was issued to you on Form SS-4.” Not your SSN: “Don’t enter your SSN.” Whether you need one at all: “You need an EIN only if you have a qualified retirement plan or are required to file employment, excise, alcohol, tobacco, or firearms returns, or if you are a payer of gambling winnings.” The application form is covered on Form SS-4.
An LLC owner gets one more caution: “However, you should enter on line D only the EIN issued to you and in your name as the sole proprietor of your farming business.”
Line E: material participation
Line E asks whether you materially participated in 2025. The Instructions point to the Schedule C definition and then add a farm-specific rule: “If you are a retired or disabled farmer, you are treated as materially participating in a farming business if you materially participated 5 or more of the 8 years preceding your retirement or disability.” The passive-loss form is Form 8582.
Lines F and G: Forms 1099
Line F: “If you made any payments in 2025 that would require you to file any Forms 1099”, answer Yes; otherwise answer No. The dollar rule the Instructions give for the common forms: “Generally, you must file Form 1099-MISC or Form 1099-NEC if you paid at least $600 in rents, services, prizes, medical and health care payments, and other income payments.” The 1099-NEC pages start at 1099-NEC and 1099-MISC boxes. Line G asks whether you did or will file them.
Edition
This page reads Schedule F (Form 1040) for 2025 and the Instructions for Schedule F (Form 1040) (2025), the files irs.gov served on 2026-11-07. Line numbers belong to that edition, so check the label printed on the schedule in your own copy before you follow a line reference.
Common mistakes
- Entering your SSN on line D. The Instructions say the line takes an EIN issued to you, or stays blank.
- Entering an LLC’s EIN on line D when the LLC is disregarded and you are the sole owner.
- Choosing a code for a side activity instead of the activity that is the source of most of your income.
- Answering line E Yes out of habit when the retired-or-disabled rule or a Schedule C test is not actually met.
Related: Schedule F overview, Form SS-4, and Form 8582.
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- Schedule F (Form 1040), Profit or Loss From Farming (2025): https://www.irs.gov/pub/irs-pdf/f1040sf.pdf
- Instructions for Schedule F (Form 1040) (2025): https://www.irs.gov/pub/irs-pdf/i1040sf.pdf
Read from the IRS documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.