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 much do you have to make to file taxes — What is the minimum income to file taxes?

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.

I have a capital gains rental property question. If I sold a home that I rent out, am I subject to rental capital gains

Do you have to pay capital gains if you sell your rental property? Learn more from the tax experts at H&R Block.

Holding Period

What is a holding period? Learn more about an investment holding period and get tax answers at H&R Block.

I would like to get wage and income transcript information. I need a list of all the income I earned last year — Can I

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.