How do I report patronage dividends I received that are included on a Form 1099-PATR?
Regarding Form 1099-PATR, report patronage dividends the same way you deducted them. Use one of these:
- Schedule C: Profit or Loss From Business
- Schedule F: Profit or Loss From Farming
- Form 4835: Farm Rental Income and Expenses
- Form 1040 (used when previous deductions were taken on Schedule A)
Don’t report as income any patronage dividends from buying personal or family items including:
- Fuel bought for personal use
- Basic local telephone service
- Personal long-distance calls
Patronage dividends from buying capital assets or depreciable property would reduce the basis of the property. If the dividend is more than the adjusted basis of the property, you must report the excess as income.
If you don’t know if the dividend is for business or personal items, report the entire amount as income.
The minimum income amount depends on your filing status and age. In 2017 for example, the minimum for single filing status if under age 65 is $10,400. If your income is below that threshold, you generally do not need to file a federal tax return. Review our full list for other filing statuses and ages.
Do you have to pay capital gains if you sell your rental property? Learn more from the tax experts at H&R Block.
What is a holding period? Learn more about an investment holding period and get tax answers at H&R Block.
Do you need to get a copy of your wage and income transcript from the IRS? Learn more from the tax experts at H&R Block.