Question

Form 1099-PATR - Taxable Distributions Received from Cooperatives

Accepted Answer

A cooperative files Form 1099-PATR, Taxable Distributions Received From Cooperatives, for each person paid at least $10 in dividends and other distributions. If you received a Form 1099-PATR, you will need to 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 review the instructions from IRS Publication 225. Also see Statements to Recipients in the IRS Instructions for Form 1099-PATR for additional information.

Patronage dividends and other distributions in Boxes 1, 2, 3, and 5 from a cooperative are reported on:

Schedule C (Form 1040), Profit or Loss From Business
1. See Schedule C - Entering Sole Proprietorship in Program FAQ for steps.
2. Form 1099-PATR income is reported as Other Income.
3. If you purchased personal items (as detailed in IRS Publication 225), subtract the dividends from purchasing personal items and only enter the NET amount in the Other income field.
Schedule F (Form 1040), Profit or Loss From Farming
1. See Schedule F - Entering Farm Income in Program FAQ for steps.
2. Form 1099-PATR income is entered on the Farm Income – Cooperative Distributions screen.
3. There are two fields: Total received and Taxable amount. You can determine the taxable amount by subtracting the dividends from purchasing personal items from the total received (as detailed in IRS Publication 225).
Form 4835, Farm Rental Income and Expenses
1. See Form 4835 - Entering in Program FAQ for steps.
2. Co-op distributions are entered on the screen titled Farm Rental - Cooperative Distributions.

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. If you need help accessing Form 1099-MISC in the TaxAct program, go to our Form 1099-MISC - Federal or State Withholding FAQ.

Amounts reported in Boxes 7, 8, and 9 provide information used to calculate the Qualified Business Income (QBI) deduction under section 199A. This information may be needed when completing Form 8995 or Form 8995-A. Review the instructions for those forms if applicable.

Accepted Answer

A cooperative files Form 1099-PATR, Taxable Distributions Received From Cooperatives, for each person paid at least $10 in dividends and other distributions. If you received a Form 1099-PATR, you will need to 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 review the instructions from IRS Publication 225. Also see Statements to Recipients in the IRS Instructions for Form 1099-PATR for additional information.

Patronage dividends and other distributions in Boxes 1, 2, 3, and 5 from a cooperative are reported on:

Schedule C (Form 1040), Profit or Loss From Business
1. See Schedule C - Entering Sole Proprietorship in Program FAQ for steps.
2. Form 1099-PATR income is reported as Other Income.
3. If you purchased personal items (as detailed in IRS Publication 225), subtract the dividends from purchasing personal items and only enter the NET amount in the Other income field.
Schedule F (Form 1040), Profit or Loss From Farming
1. See Schedule F - Entering Farm Income in Program FAQ for steps.
2. Form 1099-PATR income is entered on the Farm Income – Cooperative Distributions screen.
3. There are two fields: Total received and Taxable amount. You can determine the taxable amount by subtracting the dividends from purchasing personal items from the total received (as detailed in IRS Publication 225).
Form 4835, Farm Rental Income and Expenses
1. See Form 4835 - Entering in Program FAQ for steps.
2. Co-op distributions are entered on the screen titled Farm Rental - Cooperative Distributions.

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. If you need help accessing Form 1099-MISC in the TaxAct program, go to our Form 1099-MISC - Federal or State Withholding FAQ.

Amounts reported in Boxes 7, 8, and 9 provide information used to calculate the Qualified Business Income (QBI) deduction under section 199A. This information may be needed when completing Form 8995 or Form 8995-A. Review the instructions for those forms if applicable.