Brocketfs Ag Advice
By John E. Brockett
jH Farm Management Agent
Lewistown Extension Office
Preparing For
1984 Taxes
As a fanner you have 3 choices
on when to pay your 1984 Federal
Income Tax. You cAn file quarterly
estimates in April, June, Sep
tember and January (most self
employed people must do this).
You can file a one time estimate by
January 15, 1985. Or you can file
your final return by March 1, 1985
with no estimates.
MAKE MORE MILK.
CUT FEED COST.
OR BOTH!
ASK ME TO BALANCE YOUR
MILK COW RATIONS BY COMPUTER.
ON YOUR FARM. IN MINUTES. FREE!
Formulating dairy rations by computer
makes sense.
A properly programmed computer can
make complicated calculations in a second
or two. It can take into consideration
nutritive values of all the things cows eat
and tell you how much of each ingredient
to feed to answer your cows' body
maintenance and milk production needs.
But, a computer is expensive. It takes
skilled, trained nutritionists to set up
the program and a specialized operator
to make it work.
Manufacturers of quality premixes for dairy cattle, beef cattle and hogs
Estimates
There may be advantages to
filing estimates. Quarterly
estimates mean paying smaller
amounts more often - some people
find this easier. Both types of
estimates give you until April 15 to
file your final tax return if you pay
in enough.
Of course, there are definite
advantages to filing by March 1.
You can save your money thru the
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Available for Spring
also
WL 311, WL 313, WL 318,
Saranac AR, Clover, Orchard
Grasses, Oats
TOBACCO NEEDS
• Nylon Bed Covers • Bed Fertilizer
• Cotton Hulls • Seed
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FARMERS
I SUPPLY
Box 1537 215 East Fulton St.
Lancaster, PA
(717) 394-7127
year as a sort ot self imposed
wihtholding and earn interest on it
You only have to mess with income
tax work once. You have tax filing
out of the way before planting
season starts.
How To File A
Tax Estimate
For quarterly estimates get
form 1040 ES. There is only one
blank to fill out (the amount you
will pay). You also must fill in the
section for your name and address.
The 1040 ES has 4 parts. The first
part is to send in by April 15, the
second by June 15, the third by
September 15, and the fourth by
January 15, 1985. To determine
how much to send with each part,
use the 1983 tax return (use
amounts from lines 40, 50 and 52).
Pay 10% of that amount in April,
June, and September. For
January, subtract 8% of the total
cost of machinery you purchased
in 1984 from the amount on line 40
of the 1983 return. Then add the
difference (can not be less than 0)
from line 40 to the amounts on lines
50 and 52 and subtract what you
With McNess' Maxi-Milk™ program
you can use our computer ..free.
There's no waiting period.
You tell me how big your cows are,
what you're feeding (or would like
to feed), how much milk you expect your
cows to produce
I'll make one phone call. . from your
Ehone .and show you a
etter, more produc
five lower cost way to
feed your cows!
Call me. Today.
ica»ttr Farming, Saturday, February 25,1984—D19
paid in April, June, and Sep
tember. The difference is what you
would pay as your January
estimate. Example: In 1983, line 40
was $2500, line 50 was $lOO2, line 52
was $125 for a total of $3627. Pay
$363 in April, June and September
for a total of $lOB9.
For 1984 you purchased $16,000
worth of machinery so deduct $l2BO
from $2500 to get a remainder of
$1220. Add $1220 to $lOO2 and to $125
to get $2387. Since you already paid
$lOB9 in on previous quarterly as
an estimate; your January
estimate would be $1258. For a one
tune (January) estimate, go thru
the same calculations to arrive at
your estimated payment that is
due. Then pay the total amount in
January. Example; Same farm as
before: total 1983 tax was $3627,8%
of machinery purchases is $l2BO so
tax estimate due is $2347.
Remember you can not use more
investment credit (the 8%) than
you have federal income tax due.
A Self Withholding Plan
Farmers should prepare now for
taxes that must be paid a year
from now. Why 7 Let’s start off
with a 11.3% self employment
social security tax. Then add 2.45%
state tax plus 1% local earned
income tax. That becomes a
14.75% tax before the federal in
come tax is paid. How can you
prepare 7
Corn Clinic
DUNMORE The annual N.E.
Regional Corn Clinic will be held
Monday, March 5, from 10 a.m. to
3:30 p.m. at the Penn State Wor
thington Scranton Campus,
Dunmore. The event, sponsored by
the Penn State Agricultural Ex
tension Service in cooperation with
area farm supply dealers will
feature educational presentations
as well as commercial displays.
Educational speakers will in
clude Joseph McGahen, Douglass
Beagle, Richard Adams and
Thomas Lamm, Penn State Ex
tension specialists. They will
discuss such topics as corn fer-
1. Put 12% of your 1983 tax
(federal income tax, social
security tax, state tax, and local
earned income tax) in a savings
account every month starting in
March. You should use a money
market fund or account to get as
much interest as possible.
2. Put 20% of the proceeds in
excess of $40,000 from the sale of
land, cattle, buildings, or any other
capital asset, into the same ac
count.
3. Put 15% of the proceeds from
PIK commodities that were sold in
1984 into the same account.
4. If you signed up for the milk
diversion program, put 10% of the
quarterly payment into the same
account.
This account will work the same
as withholding does for people
working in industry. The one
difference will be that you will
earn the interest on the money
instead of the government lenders.
If you over pay into it, use the
money as an instant refund. That
means pay off some bills, spend it,
invest it, or leave if in for 1985’s
taxes. One word of caution - do not
count on investment credit
covering your tax bill. Besides the
14.75% of earned income you may
be tripped up with the alternative
minimum tax if you have capital
sales in excess of $40,000. (that is a
guaranteed minimum tax of 20%
on income over $40,000).
on March 5
tilization, weed control, a report of
the 1983 Penn State corn research
trials, and feeding gram mixture to
dairy cattle.
Lunch will be served at the
meeting site. Lunch tickets and
reservations can be made by
contacting any Agricultural Ex
tension Office in Northeastern
Pennsylvania.
Farm supply dealers interested
in participating in the Corn Clinic
should contact John Creighton,
County Extension Director, Wayne
County Extension Service,
Courthouse, Honesdale.