Where Would I Enter Information from a 1099-PATR for Farm Income?
When reporting farm income received from a cooperative, you may receive Form 1099-PATR, Taxable Distributions Received From Cooperatives. This form is used by cooperatives to report patronage dividends, per-unit retain allocations, nonpatronage distributions, and other amounts paid to patrons. If you are a farmer or agricultural producer, amounts reported on Form 1099-PATR that are related to your farming business are generally reported on Schedule F (Form 1040), Profit or Loss From Farming.
How to Report 1099-PATR Information
- Box 1 – Patronage Dividends: Patronage dividends received from a cooperative in connection with your farming business are generally reported as farm income on Schedule F (Form 1040). Include the amount in farm income for the tax year received unless special rules apply.
- Box 2 – Nonpatronage Distributions: Report taxable nonpatronage distributions according to the nature of the income and the activity to which they relate. If the distribution is connected to your farming business, it is generally reported as farm income.
- Box 3 – Per-Unit Retain Allocations: Report per-unit retain allocations received in connection with your farming business as farm income on Schedule F (Form 1040).
- Box 4 – Federal Income Tax Withheld: Enter any federal income tax withheld on the appropriate withholding section of your federal income tax return. This amount is treated as federal income tax already paid.
- Box 5 – Redeemed Nonqualified Notices: Report taxable amounts according to the Form 1099-PATR instructions and the nature of the underlying activity.
- Box 6 – Section 199A(g) Deduction: This box reports information provided by specified agricultural or horticultural cooperatives that may be needed in determining deductions related to cooperative activities.
- Box 7 – Qualified Payments: Qualified payments reported by specified agricultural or horticultural cooperatives may be used in calculating deductions and limitations related to Section 199A.
- Box 8 – Section 199A(a) Qualified Items: Report these qualified items as part of the calculation of qualified business income (QBI), if applicable. These amounts may be used when completing Form 8995 or Form 8995-A.
- Box 9 – Section 199A(a) SSTB Items: If reported, these items must be taken into account when calculating qualified business income and any applicable Section 199A deduction limitations.
It is important to report all taxable amounts shown on Form 1099-PATR and to retain the form with your tax records. The cooperative is generally required to issue Form 1099-PATR when it pays qualifying patronage dividends, distributions, per-unit retain allocations, or when federal income tax withholding applies.
Reporting on Schedule F
If the Form 1099-PATR relates to your farming business:
- Report patronage dividends and other farm-related cooperative distributions as farm income on Schedule F (Form 1040).
- Include any related qualified business income information when calculating the Section 199A deduction.
- Report federal income tax withheld as tax payments on your federal return.
Additional Forms You May Need
- Form 8995: Qualified Business Income Deduction Simplified Computation.
- Form 8995-A: Qualified Business Income Deduction for taxpayers subject to the more complex Section 199A calculations.
- Schedule F (Form 1040): To report farm income and expenses.
Source:
Instructions for Form 1099-PATR
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions before filing your tax return.