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 on Prize Winnings and More!

When you come into surprise money, you have to pay taxes on prize money. Learn more with the tax experts at H&R Block.

The IRS, Bitcoin, and Other Virtual Currencies

Have you found yourself wondering how the IRS classifies Bitcoin? Our tax pros discuss relevant IRS Bitcoin law and notices. Learn more with H&R Block.

Are Social Security Benefits Taxable?

Up to 50% or even 85% of your Social security benefits are taxable if your “provisional” or total income, as defined by tax law, is above a certain base amount. Your Social Security income may not be taxable at all if your total income is below the base amount.

Reporting Babysitting Income

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