Sch J (1040) Income Averaging for Farmers and Fishermen

Note: The draft you are looking for begins on the next page.

Caution: DRAFT—NOT FOR FILING

This is an early release draft of an IRS tax form, instructions, or publication,
which the IRS is providing for your information. Do not file draft forms and do
not rely on draft forms, instructions, and pubs for filing. We incorporate all
significant changes to forms posted with this coversheet. However, unexpected
issues occasionally arise, or legislation is passed—in this case, we will post a
new draft of the form to alert users that changes were made to the previously
posted draft. Thus, there are never any changes to the last posted draft of a
form and the final revision of the form. Forms and instructions are subject to
OMB approval before they can be officially released, so we post drafts of them
until they are approved. Drafts of instructions and pubs usually have some
additional changes before their final release. Early release drafts are at
IRS.gov/DraftForms and remain there after the final release is posted at
IRS.gov/LatestForms. Also see IRS.gov/Forms.
Most forms and publications have a page on IRS.gov: IRS.gov/Form1040 for
Form 1040; IRS.gov/Pub501 for Pub. 501; IRS.gov/W4 for Form W-4; and
IRS.gov/ScheduleA for Schedule A (Form 1040), for example, and similarly for
other forms, pubs, and schedules for Form 1040. When typing in a link, type it
into the address bar of your browser, not a Search box on IRS.gov.
If you wish, you can submit comments to the IRS about draft or final forms,
instructions, or pubs at IRS.gov/FormsComments. Include “NTF” followed by the
form or pub number (for example, “NTF1040”, “NTFW4”, “NTF501, etc.) in the
body of the message to route your message properly. We cannot respond to all
comments due to the high volume we receive and may not be able to consider
many suggestions until the subsequent revision of the product, but we will
review each “NTF” message. If you have comments on reducing paperwork and
respondent (filer) burden, with respect to draft or final forms, please respond to
the relevant information collection through the Federal Register process; for
more info, click here.

Income Averaging for
Farmers and Fishermen

SCHEDULE J
(Form 1040)
Department of the Treasury
Internal Revenue Service

OMB No. 1545-0074

2023

Attach to Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/ScheduleJ for instructions and the latest information.

Attachment
Sequence No. 20
Social security number (SSN)

Name(s) shown on return

TREASURY/IRS
AND OMB USE
ONLY DRAFT
}
June 22, 2023
DO NOT FILE
}

1

Enter the taxable income from your 2023 Form 1040, 1040-SR, or 1040-NR, line 15

.

.

1

2a

Enter your elected farm income. See instructions. Do not enter more than the amount on line 1 .

.

2a

Capital gain included on line 2a:
b Excess, if any, of net long-term capital gain over net short-term capital loss .

2b

c

2c

.

.

.

.

Unrecaptured section 1250 gain

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

3

Subtract line 2a from line 1 .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

3

4

Figure the tax on the amount on line 3 using the 2023 tax rates. See instructions

.

.

.

.

.

.

.

4

5

If you used Schedule J to figure your tax for:
• 2022, enter the amount from your 2022 Schedule J, line 11.
• 2021 but not 2022, enter the amount from your 2021 Schedule J, line 15.
• 2020 but not 2021 or 2022, enter the amount from your 2020 Schedule J,
line 3.
Otherwise, enter the taxable income from your 2020 Form 1040, 1040-SR,
or 1040-NR, line 15. If zero or less, see instructions.

.

.

.

.

.

.

8

.

.

.

.

.

.

12

16

.

5

6

Divide the amount on line 2a by 3.0 .

.

.

.

.

.

.

.

.

.

.

.

6

7

Combine lines 5 and 6. If zero or less, enter -0-

.

.

.

.

.

.

.

.

.

.

7

8

Figure the tax on the amount on line 7 using the 2020 tax rates. See instructions

9

If you used Schedule J to figure your tax for:
• 2022, enter the amount from your 2022 Schedule J, line 15.
• 2021 but not 2022, enter the amount from your 2021 Schedule J, line 3.
Otherwise, enter the taxable income from your 2021 Form 1040, 1040-SR,
or 1040-NR, line 15. If zero or less, see instructions.

.

.

.

9

10

Enter the amount from line 6

.

.

.

10

11

Combine lines 9 and 10. If less than zero, enter as a negative amount .

.

.

11

12

Figure the tax on the amount on line 11 using the 2021 tax rates. See instructions .

13

If you used Schedule J to figure your tax for 2022, enter the amount from your
2022 Schedule J, line 3. Otherwise, enter the taxable income from your 2022
Form 1040, 1040-SR, or 1040-NR, line 15. If zero or less, see instructions .

13

14

Enter the amount from line 6

15

Combine lines 13 and 14. If less than zero, enter as a negative amount

16

Figure the tax on the amount on line 15 using the 2022 tax rates. See instructions .

.

.

.

.

.

.

17

Add lines 4, 8, 12, and 16

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

For Paperwork Reduction Act Notice, see your tax return instructions.

.

.

.

.

.

.

.

.

.

.

.

.

.

14

.

.

15

.

.

.

.

Cat. No. 25513Y

17
Schedule J (Form 1040) 2023

Page 2

Schedule J (Form 1040) 2023

18

Amount from line 17

19

If you used Schedule J to figure your tax for:
• 2022, enter the amount from your 2022 Schedule J, line 12.
• 2021 but not 2022, enter the amount from your 2021 Schedule J, line 16.
• 2020 but not 2021 or 2022, enter the amount from your 2020 Schedule J,
line 4.
Otherwise, enter the tax from your 2020 Form 1040, 1040-SR, or 1040-NR,
line 16.

20

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

18

}
TREASURY/IRS
19

AND OMB} USE
ONLY DRAFT
June 22, 2023
DO NOT FILE

If you used Schedule J to figure your tax for:
• 2022, enter the amount from your 2022 Schedule J, line 16.
• 2021 but not 2022, enter the amount from your 2021 Schedule J, line 4.
Otherwise, enter the tax from your 2021 Form 1040, 1040-SR, or 1040-NR,
line 16.

20

21

If you used Schedule J to figure your tax for 2022, enter the amount from your
2022 Schedule J, line 4. Otherwise, enter the tax from your 2022 Form 1040,
1040-SR, or 1040-NR, line 16* . . . . . . . . . . . . . . . .
21
* Only include tax reported on this line that is imposed by section 1 of the Internal Revenue Code. See
instructions.

22

Add lines 19 through 21 .

23

Tax. Subtract line 22 from line 18. Also include this amount on Form 1040, 1040-SR, or 1040-NR,
line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

22

23

Caution: Your tax may be less if you figure it using the 2023 Tax Table, Tax Computation Worksheet,
Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet. Attach Schedule
J only if you are using it to figure your tax.

Schedule J (Form 1040) 2023