Farmers and fishermen

Special rules apply to estimated payments for farmers and fishermen. A taxpayer is considered a farmer or fisherman if at least 2/3 of their gross income is from farming or fishing for the tax year or for the preceding tax year. Please see IRS Publication 505 for assistance in calculating gross income from farming and fishing.

Farmers and fishermen are required to make only one estimated payment, due January 15 of the following tax year, for the entire required annual amount, rather than four quarterly payments. The required annual amount for farmers and fishermen is 50% (rather than 70%) of their net Colorado tax liability for the current year. Please see Net Colorado tax liability, earlier in this publication, for instructions in calculating net Colorado tax liability.

Additionally, farmers and fishermen are exempt from the requirement to remit any estimated tax payments if they file their Colorado returns and remit full payment of any tax due by March 1st of the following year.