Dan Posted February 24, 2009 Report Posted February 24, 2009 In 2008 "The Food, Conservation, and Energy Act of 2008 excludes CRP payments from self-employment tax for individuals receiving social security benefits...This is effective for payments received after December 31, 2007." See the instructions for line 1b on Schedule SE (form 1040). This new rule saves a person a lot of money. (If you click on the bunny, line 12 of the worksheet gives you the place to enter the CRP payment received) Have you seen this great benefit? Quote
kcjenkins Posted February 24, 2009 Report Posted February 24, 2009 Yes, it shows the political power of the retirees, that's for sure. Quote
OldJack Posted February 24, 2009 Report Posted February 24, 2009 In 2008 "The Food, Conservation, and Energy Act of 2008 excludes CRP payments from self-employment tax for individuals receiving social security benefits Ok.. I guess I am new at this. What is a CRP payment and how much trouble would it have been for you to have spelled it out for us dummies. Quote
kcjenkins Posted February 24, 2009 Report Posted February 24, 2009 Conservation Reserve Program payments, Jack. You must not have many farmer clients, huh? Quote
Dan Posted February 24, 2009 Author Report Posted February 24, 2009 Conservation Reserve Program payments, Jack. You must not have many farmer clients, huh? Sorry, OldJack, KC has given the anser above. Quote
grandmabee Posted February 24, 2009 Report Posted February 24, 2009 In 2008 "The Food, Conservation, and Energy Act of 2008 excludes CRP payments from self-employment tax for individuals receiving social security benefits...This is effective for payments received after December 31, 2007." See the instructions for line 1b on Schedule SE (form 1040). This new rule saves a person a lot of money. (If you click on the bunny, line 12 of the worksheet gives you the place to enter the CRP payment received) Have you seen this great benefit? are ALL CRP payments subject to SE? Quote
Dan Posted February 24, 2009 Author Report Posted February 24, 2009 I believe all CRP payments must be included on either: 1. Form 1040 (schedule F) for farmers 2. Form 4835 for non-farmers who own land in which they receive the CRP payment. Quote
OldJack Posted February 24, 2009 Report Posted February 24, 2009 Conservation Reserve Program payments, Jack. You must not have many farmer clients, huh? I have several farmers but not ones that are receiving Conservation Reserve Program payments. I don't understand why someone that is wanting other peoples opinions would ask a question that contains slang or abbreviation such as "NNS1231LPY" that would not be easily recognized by everyone. Quote
Catherine Posted February 24, 2009 Report Posted February 24, 2009 <snip> I don't understand why someone that is wanting other peoples opinions would ask a question that contains slang or abbreviation such as "NNS1231LPY" that would not be easily recognized by everyone. Perhaps because if you don't understand the abbreviation, you don't have enough experience with the subject to express an opinion? I certainly didn't know what CRP payments were. But here in eastern Massachusetts the few farms that exist are far between, and not my bailiwick. I have never seen a farm return in "real life"; just some examples when I was studying for my EA lo these many years ago. I remember being startled (not surprised; on consideration it made perfect sense) by the disparate treatment of beef and dairy cows. I still use that as an example for people to distinguish between expense and depreciable asset. They all get it; it always makes them chuckle, too. Although I've never tried that example with a vegan; I suspect their reactions may be a bit different... Catherine Quote
JohnH Posted February 24, 2009 Report Posted February 24, 2009 I have several farmers but not ones that are receiving Conservation Reserve Program payments. I don't understand why someone that is wanting other peoples opinions would ask a question that contains slang or abbreviation such as "NNS1231LPY" that would not be easily recognized by everyone. Well Jack, one could take the opposite view. Someone wanting other people's opinions might only be interested in the opinions of those who understand the slang or abbreviation. :) Quote
OldJack Posted February 24, 2009 Report Posted February 24, 2009 Well Jack, one could take the opposite view. Someone wanting other people's opinions might only be interested in the opinions of those who understand the slang or abbreviation. Very true John. I expect you were one of the few that understood the abbreviation that I used in my example. Quote
Janitor Bob Posted February 24, 2009 Report Posted February 24, 2009 Very true John. I expect you were one of the few that understood the abbreviation that I used in my example. I like caramel apples...especially with chopped toasted nuts sprinkled on top. Quote
OldJack Posted February 24, 2009 Report Posted February 24, 2009 I like caramel apples...especially with chopped toasted nuts sprinkled on top. Nice try Bob, but that was not what the abbreviations meant. :) Quote
Janitor Bob Posted February 24, 2009 Report Posted February 24, 2009 Nice try Bob, but that was not what the abbreviations meant. ...must be a regional thing......You tell somebody around here that you want a "CRP" you're either gonna get a Caramel apple with nuts or a Cathode Ray Prostitute .....Trust me...you do NOT want a Cathode Ray Prostititute Quote
OldJack Posted February 24, 2009 Report Posted February 24, 2009 ...You tell somebody around here that you want a "CRP" At first I just thought they had a typo and had left out the letter "A". :dunno: Quote
kcjenkins Posted February 24, 2009 Report Posted February 24, 2009 are ALL CRP payments subject to SE? That is just the point, Until this new position, they were all subject to SE tax. Lots of retired farmers who are still getting them felt that was unfair, and now the Congress has agreed with them. Quote
OldJack Posted February 24, 2009 Report Posted February 24, 2009 That is just the point, Until this new position, they were all subject to SE tax. Lots of retired farmers who are still getting them felt that was unfair, and now the Congress has agreed with them. But didn't the post say "excludes CRP payments from self-employment tax for individuals receiving social security benefits". What about farmers that are not receiving SS. edit: Excuse me I mean "Social Security". Quote
JohnH Posted February 24, 2009 Report Posted February 24, 2009 Jack: Thanks for the vote of confidence, but I'll have to plead ignorance on the NNS1231LPY abbreviation. Quote
OldJack Posted February 24, 2009 Report Posted February 24, 2009 Jack: Thanks for the vote of confidence, but I'll have to plead ignorance on the NNS1231LPY abbreviation. Exactly my point John. We are all ignorant if we don't immediately recognize and understand what someone else thinks we should recognize and understand. Quote
kcjenkins Posted February 24, 2009 Report Posted February 24, 2009 OK, so what does "NNS1231LPY" mean? Quote
JohnH Posted February 24, 2009 Report Posted February 24, 2009 Jack: Exactly why I wouldn't have been interested in answering the question in the first place, and why no one should have been interested in my answer, had I tried to provide one. But of course that doesn't preclude both of us from learning from answers provided by others who understood. Quote
Maura Posted February 24, 2009 Report Posted February 24, 2009 I'll take a stab at NNS1231LPY nonrecaptured net section 1231 losses prior year Quote
OldJack Posted February 25, 2009 Report Posted February 25, 2009 I'll take a stab at NNS1231LPY nonrecaptured net section 1231 losses prior year And we have a WINNER!!!! Of course Maura knew that and knows what it is all about. And its a dollar amount for line 8 on page 1 of form 4797. A form we all fill out for many clients (and a line we frequently overlook). Quote
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