If you received a Form 1099-PATR Taxable Distributions Received From Cooperatives, below is the information you will need to help you determine if the amount needs to be entered on your return. If the purchases you made from the cooperative were only for personal items, please note the instructions from IRS Publication 225 below.
Per the IRS Instructions for Form 1099-PATR:
Instructions for Recipient
Distributions you received from a cooperative may be includible in your income. Generally, if you are an individual, report any amounts shown in boxes 1, 2, 3, and 5 as income, unless nontaxable, on Schedule F (Form 1040), Schedule C (Form 1040), or Form 4835. See the Instructions for Schedule F (Form 1040) and Pub. 225 for more information.
Per IRS Publication 225 Farmer's Tax Guide, page 14:
Personal purchases. . Because you can't deduct the cost of personal, living, or family items, such as supplies, equipment, or services not related to the production of farm income, you can omit from the taxable amount of patronage dividends on Schedule F any dividends from buying those items (and you must reduce the cost or other basis of those items by the amount of the dividends). This rule also applies to amounts you receive from the sale, redemption, or other disposition of a nonqualified written notice of allocation resulting from these purchases.
To enter the data on Schedule C or Schedule F in the TaxAct program:
If entering the information from Form 1099-PATR on the Schedule F: Enter the amounts on the screen titled Farm Income - Cooperative Distributions. As you will see, there are two fields for Total Received and Taxable Amount. You can determine the Taxable Amount by subtracting the dividends from purchasing personal items (as mentioned in the excerpt above from Pub. 225) from the Total Received.
If entering the information from Form 1099-PATR on the Schedule C: Enter the amounts on the screen titled Business Income - Other Income which will transfer to Schedule C, Line 6. If you purchased personal items as mentioned in the excerpt from Pub. 225 above, subtract the dividends from purchasing personal items and only enter the NET amount in the Other Income field.
To enter the data on Form 4835 for farm rental in the TaxAct program:
If there is Federal and/or State income tax withheld on the Form 1099-PATR, those amounts would be entered in the Form 1099-MISC section: