Question

How do I report patronage dividends I received that are included on a Form 1099-PATR?

Answer

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.

Related Topics

Related Resources

Second Home Taxes

Learn more about second home tax deductions and taxes on selling a second home with the tax experts at H&R Block.

What Is State Income Tax Reciprocity?

Live in one state, but work in another? Review state income tax reciprocity rules with the team at H&R Block to learn how it may affect your taxes.

Is Work-Study Income Taxable?

Is your work-study income considered taxable by the IRS? Learn more from the tax experts at H&R Block.

[Now Hiring] The Best Seasonal Jobs Are…

Need extra cash? H&R Block is here to help with a list of some of the best temporary jobs for making money on the side.