Cooperatives typically commingle products of members for marketing and purchase supplies in bulk for resale. The cooperative deducts the amount of the patronage refund or per-unit retain from taxable income and the patron agrees to include it in taxable income as if it had all been paid in cash.
Where do I report 1099-PATR on my tax return?
The 1099-PATR income should be shown as Other Income reported on Form 1040, Schedule 1, Part I, Line 8. You should report it as “1099-PATR profits from” your co-op and list the co-op’s Tax Payer Identification Number (TIN).
When do I need to file Form 1099 Patr?
File Form 1099-PATR, Taxable Distributions Received From Cooperatives, for each person to whom the cooperative has paid at least $10 in patronage dividends and other distributions described in section 6044(b) or from whom you withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.
What kind of tax credits do you get on a 1099 Patr?
The 1099-PATR will also show your federal tax credits. These include investment credits, the work opportunity credit, and others, including credits for renewable energy and refined fuel, empowerment zones, and small-employer health insurance premiums. Some cooperatives may be exempt from having to file a 1099-PATR.
When do you get a 1099-patr from a cooperative?
You receive a 1099-PATR if in the previous year you were paid at least $10 in patronage dividends and other distributions from a cooperative. It is often used to report dividends associated with farms, but you can also receive it for other reasons, including if you had any federal income tax withheld in connection with a cooperative.
Who is Eric Estevez and what is 1099-patr?
Eric Estevez is financial professional for a large multinational corporation. His experience is relevant to both business and personal financial topics. What Is Form 1099-PATR Taxable Distributions Received From Cooperatives?
