Introduction You may receive income from many sources. You must report theincome on your tax return, unless it is excluded by law. Where youreport the income depends on its source. This chapter discusses farm income you report on Schedule F. Forinformation on where to report other income, see the instructions forForm 1040. Accounting method.The rules discussed in this chapter assume you use the cash methodof accounting. Under the cash method, you generally include an item ofincome in gross income when you receive it. See Cash Methodin chapter 3. If you use an accrual method of accounting, you may have to makechanges to the rules in this chapter. See Accrual Method inchapter 3.