Form 1099-PATR is an IRS form used to report distributions that taxpayers have received from a cooperative that may need to be included in their taxable income. Taxpayers who received at least $10 in patronage dividends in the prior year receive a 1099-PATR, which may include dividends associated with farms, federal income tax withheld, and more.
What is Form 1099-PATR?
Form 1099-PATR is a form typically sent by the IRS to taxpayers who earned at least $10 in patronage dividends and other distributions from a cooperative in the previous year. This form, used to report cooperative-related income, may include the taxpayer’s TIN, Social Security Number, account number, and the amount they were paid. Income reported on this form may include dividends associated with farms, federal income tax withheld under backup withholding rules, and their share of an Internal Revenue Code deduction. It’s important to note that cooperatives may be exempt from filing this form. It’s essential to consult a tax professional when filling out this form, as income reported may be subject to self-employment taxes.
IRS Form 1099-PATR – Who Needs to Fill It Out?
IRS Form 1099-PATR is used to report income from cooperatives and businesses, such as patronage dividends from a cooperative. Taxpayers should be sent this form if they have received at least $10 in qualifying distributon payments as defined by the Internal Revenue Code. Taxpayers should make sure their correct Taxpayer ID is provided when working with a cooperative to ensure that any federal income tax withheld is reported on the 1099-PATR correctly when filing taxes.
Step-by-Step: Form 1099-PATR Instructions For Filling Out the Document
Form 1099-PATR is an important form that taxpayers use to report taxable distributions received from cooperatives, such as dividends associated with farms and other forms of income. The form may need to be filed if taxpayers received at least $10 in patronage dividends and other distributions from a cooperative the previous year. The form should include the taxpayer’s identification number, account number, and the amount of money they received. It may also include information about deductions taken and federal income taxes withheld from the payment, as well as other items such as qualified per-unit retain certificates. Depending on the particular cooperative, exemptions from filing Form 1099-PATR may apply, and it is important for taxpayers to consult with a tax professional if they have any questions.
Below, we present a table that will help you understand how to fill out Form 1099-PATR.
| Information | Details |
|---|---|
| Form 1099-PATR Purpose | Report taxable distributions received from cooperatives |
| Types of Income Reported | Patronage dividends, other cooperative distributions, farm-related income |
| Filing Threshold | At least $10 received in the previous year |
| Required Information | Taxpayer’s identification number, account number, received amount |
| Additional Information | Deductions, federal income taxes withheld, per-unit retain certificates |
| Exemptions | May apply in certain cases; consult a tax professional if unsure |
Do You Need to File Form 1099-PATR Each Year?
Do You Need to File Form 1099-PATR Each Year? Taxpayers who receive 1099-PATR must report the distributions as ordinary income on their tax returns. This applies if they received at least $10 in patronage dividends or other distributions from a cooperative in the previous year, or if they had federal income tax withheld in connection with a cooperative. The form will show the federal income tax withheld, as well as the account number, taxpayer identification number, the amount paid, and various deductions the cooperative may have for their federal taxes. If you have questions, it is best to consult a tax professional.
Download the official IRS Form 1099-PATR PDF
On the official IRS website, you will find a link to download Form 1099-PATR, Taxable Distributions Received From Cooperatives. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1099-PATR
Sources:
https://www.irs.gov/forms-pubs/about-form-1099-patr
https://www.irs.gov/instructions/i1099ptr
