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

Taxes And Business Losses

How do business losses affect your taxes? See if you are eligible for a special allowance and get tax answers at H&R Block.

Is Supplemental Security Income Taxable?

Should you count supplemental security income as taxable income? Learn more from the tax experts at H&R Block.

Are Scholarships And Grants Taxable?

Are scholarships and grants considered taxable income by the IRS? Learn more from the tax experts at H&R Block.

Stock Dividends

Are stock dividends taxable? Learn more about stock dividends and get tax answers at H&R Block.