REV-1630A: 2024 Underpayment of Estimated Tax by Farmers (REV-1630A) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
Pennsylvania Form REV-1630A helps individual farmers determine whether they qualify for the farming exception to estimated tax underpayment interest for 2024. It includes a farming exception worksheet and calculations for any estimated tax underpayment and interest penalty.
Who files this form
Individual farmers use REV-1630A to check whether they qualify for the farming exception and to calculate any estimated tax underpayment interest penalty for 2024.
- You qualify as a farmer if at least two-thirds of your gross income comes from farming. Complete the Farming Exception Worksheet to check your eligibility.
- Farmers must complete the form to show they qualify for an exception, even if they made the required payments on time and owe no penalty.
- Farmers who did not meet the payment or filing requirements use this form to determine their penalty.
- If you do not meet the farming income test, use REV-1630, Underpayment of Estimated Tax by Individuals, instead.
When it's due
For tax year 2024:
- January 15, 2025: Deadline for farmers to pay the required estimated tax under the special farming rules.
- March 3, 2025: Alternative deadline to file the 2024 PA-40 and pay the entire tax due with the return to meet the farming exception.
- April 15, 2025: End date used in the interest penalty calculation if payment was not made earlier. Line 11 counts days after January 15, 2025, through the payment date or April 15, 2025, whichever is earlier. If April 15 is earlier, enter 90 days.
What you'll need
Have these records available to complete the form:
- Your 2024 PA-40, including your tax liability, withholding, credits, payments, and filing date.
- Your name and Social Security number. For a joint return, use the primary taxpayer's name, the name shown first on PA-40.
- Records of total gross income and farming gross income. Depending on your income sources, these may include PA Schedules C, D, E, F, and T; federal Schedules K-1; PA Schedules RK-1 or NRK-1; and federal Form 4835.
- Estimated tax payment amounts and dates, including any credit carried over from the previous tax year.
- Your 2023 PA-40, especially taxable income on Line 11, if checking the prior-year income exception. You must have been a full-year Pennsylvania resident in 2023 to qualify for that exception.
- A worksheet showing additional interest calculations if required for partial payments.
How to file
Include a copy of REV-1630A with your return when claiming the Section II exception or reporting the interest penalty calculated in Section III.
If you calculate a penalty, include it with any other interest and penalties on Line 27 of your 2024 PA-40 and fill in the oval on that line. Use whole dollars only.
If you qualify for the farming exception, also fill in the farmer oval on Page 1 of PA-40.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Forgetting the farmer oval. Qualifying farmers should fill in the farmer oval on Page 1 of PA-40.
- Reducing gross income by net losses. The instructions warn that net losses in the income classes reported on PA-40 Lines 4, 5, 6, or 8 cannot reduce gross income from all sources.
- Leaving selling expenses out of the gross-income calculation. Add selling expenses back to the Schedule D net gain or loss. Any overall net loss remaining cannot reduce total gross income.
- Continuing the wrong worksheet lines after filing late. If your 2024 PA-40 filing date is after March 3, 2025, skip Lines E through I and complete the applicable parts of Sections I, II, and III.
- Treating a partial payment as full payment. If the payment made with a return filed by March 3, 2025, did not cover all tax due, additional interest calculations are required. Include a worksheet showing those calculations.
Questions people ask
Does all income connected with a farm count as farming income?
No. Farming gross income excludes sales of farmland, equipment, or livestock reported on Schedule D. It also excludes farm employee wages and income from contract grain harvesting and hauling with workers and machines you furnish.
Can I owe an underpayment penalty even if I receive a refund?
Yes. The instructions say an interest penalty may apply even if you are due a refund when you file your Pennsylvania income tax return.
When can I stop the underpayment calculation?
In Section I, stop if Line 3 is less than $292. Also stop if Line 5 is zero or less, because no penalty is due.
Is there an exception based on my previous year's income?
Yes. If you were a full-year Pennsylvania resident in 2023, Section II compares your withholding, credits, and estimated taxes paid by January 15, 2025, with your 2023 taxable income multiplied by 0.0307. If Line 8 is at least Line 10, no underpayment penalty is due. Include a copy of REV-1630A with your return.