IRS Form 1099-PATR is a document used by a cooperative to report patronage dividends and other taxable distributions as well as to report backup withholding of federal income tax.
Amounts in boxes 1, 2, 3, and 5 are reported in Schedule F. (If you're not familiar with creating Schedule F, see here for more information.)
To report cooperative distributions in Schedule F in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select:
- Income
- Farm Income (Sch F) - Select the existing Schedule F, or create a new one, in the Schedule F menu.
- Income
- 1099-PATR Distributions - Click New.
- Payer EIN - Enter the payer's EIN shown on the 1099-PATR.
- Payer Name - Enter the payer's name shown on the 1099-PATR.
- Total 1099-PATR Distributions - Enter the sum of Boxes 1, 2, 3, and 5.
- Taxable 1099-PATR Distributions - Enter the same amount as the total but reduced by any Box 1 dividends paid (a) on property bought for personal use or (b) on capital assets or depreciable property. (For (b), the basis of the asset needs to be reduced by the Box 1 amount.)
- Federal Tax Withheld - Enter the amount in Box 4.
- Qualified Payments (Box 7) - Enter the amount in Box 7. (This amount flows to Schedule D (Form 8995-A).)
- Wages from Qualified Payments - Enter the portion of wages allocable to the qualified payments. The cooperative should have provided this information, if any. (This amount flows to Schedule D (Form 8995-A).)
Note: Income derived from services performed is included in the SE tax calculation. Income received as a dividend as a passive participating member of a cooperative is not subject to the SE tax.
Box 6
An amount reported in Box 6, Section 199A(g) deduction, is added to Form 8995-A for agricultural and horticultural cooperatives. From the Main Menu of the tax return select:
- Deductions
- Qualified Business Income Deductions (8995)
- DPAD under Section 199A(g) from Agricultural Cooperative
Boxes 8 and 9
Boxes 8 and 9 assist the calculation of QBID on Form 8995 or 8995-A.
An amount in Box 8 indicates the amounts reported in Boxes 1, 2, 3, and 5 that are not from an SSTB.
An amount in Box 9 indicates the amounts reported in Boxes 1, 2, 3, and 5 that are from an SSTB.
Box 10
An amount in Box 10, Investment Credit, is reported on Form 3468. There are two places on Form 3468 where this might be reported, so the cooperative should have provided information to the taxpayer so you'll know where to enter it.
Form 3468 is in the General Business Credits menu (Form 3800). To access it, from the Main Menu of the tax return select:
- Credits
- General Business Credit (3800)
- Current Year General Business Credits
- Form 3468 - Select either Part II or Part III as appropriate.
- Unused Investment Credit from Cooperatives - Enter the EIN, name, and the amount in Box 10, and also indicate whether it's a passive or nonpassive general business credit.
Box 11
An amount reported in Box 11, Work opportunity credit, is reported on Form 5884, one of the general business credits on Form 3800. To access it, from the Main Menu of the tax return select:
- Credits
- General Business Credit (3800)
- Current Year General Business Credits
- Form 5884
- Work Opportunity Credit from Pass-Through Entities - Enter the EIN, name, and the amount in Box 11, and also indicate whether it's a passive or nonpassive general business credit.
Box 12
The cooperative will explain separately any amount it reports in Box 12. Enter it in the tax return on the appropriate form.
Note: This is a guide on entering Form 1099-PATR into the TaxSlayer Pro program. It is not intended as tax advice.
Additional Information:
IRS: Instructions for Form 1099-PATR
IRS: Instructions for Schedule F