Federal tax policy affects the economic behavior and well-being of farm households, as well as the management and profitability of farms. Recent calls for reforming current tax law could fundamentally changing the Federal income tax system by eliminating most itemized deductions and modifying credits, while restructuring capital gains and dividend tax rates, lowering tax rates on individual and business income, as well as reducing the number of tax brackets. At the same time, the Tax Cuts and Jobs Act calls for the expansion of some business provisions, and in particular that relate to capital cost recovery. The reforms, if enacted, could have a significant impact on the after-tax income and well-being of both farms and farm households. This paper uses farm-level data from USDA’s Agricultural Resource Management Survey to examine the current tax situation for farm households and to evaluate the impact the Tax Cuts and Jobs Act may have on them.