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

How to Handle Cash Payments for a Summer Job

Does your job pay cash without withholding taxes? Learn how to pay income tax with cash wages at H&R Block.

How To Calculate A Capital Gain On Property

Do you need to know how to calculate a capital gain on inherited property that was later sold? Learn more from the tax experts at H&R Block.

Reporting Babysitting Income

Learn more about reporting babysitting income on your federal taxes with help from the tax experts at H&R Block.

Reporting Multiple Stock Trades On Schedule D

Do you need to report every stock trade on a Schedule D for tax purposes. Learn more from the tax experts at H&R Block.