Form 1099-PATR: Cooperative Distributions and Your Return
Published November 7, 2026
Form 1099-PATR reports certain payments a cooperative made to you during the year. Most often these are patronage dividends. A patronage dividend is a payment to a patron, which is a person who does business with the cooperative. Farmers and other members of cooperatives may receive this form.
The Instructions for Form 1099-PATR (Rev. April 2025) say they apply to tax year 2025 and later years until a new revision is issued. This post explains the form in plain terms. It is general information, not advice about your return.
Who gets this form
A cooperative must file Form 1099-PATR for each person it paid at least $10 in patronage dividends and other distributions. It also files the form for anyone it withheld federal income tax from, no matter how small the payment was.
If the cooperative must file the form for you, it must also give you a statement. Some cooperatives that mainly sell goods or services for personal, living, or family use can apply for an exemption on Form 3491, Consumer Cooperative Exemption Application.
Dividends on stock are reported elsewhere
Dividends a cooperative pays on its capital stock are reported on Form 1099-DIV, not Form 1099-PATR. For the basics of that form, read Form 1099-INT and 1099-DIV: Reporting Interest and Dividends.
What the main boxes mean
- Box 1: your share of patronage dividends paid in cash, in qualified checks, or in qualified written notices of allocation.
- Box 2: nonpatronage distributions. The instructions limit this box to farmers' cooperatives that are exempt under section 521.
- Box 3: per-unit retain allocations paid in cash, in qualified checks, or in qualified per-unit retain certificates.
- Box 4: federal income tax withheld, including backup withholding on patronage payments.
- Box 5: redeemed nonqualified notices of allocation and per-unit retain certificates.
- Boxes 8 and 9: section 199A amounts. Box 8 covers qualified items from businesses that are not specified service trades. Box 9 covers items from specified service trades, such as health, law, and accounting services.
- Boxes 10 and 11: your share of the investment credit and the work opportunity credit.
- Box 12: other credits and deductions, each listed by type and amount.
For how the section 199A deduction works on your return, read The 20% QBI Deduction and Form 8995: Basics.
Amounts pass through to you
The instructions tell the cooperative to report only items of income, expenses, and credits that it properly passes through to patrons. The boxes show what passed through to you. Your own return decides how each amount is used, so check the instructions for each form that your amounts flow into.
Backup withholding
If you did not give the cooperative your taxpayer identification number in the required way, the cooperative may have to withhold tax. That withholding applies to payments in boxes 1, 2, 3, and 5 that are paid in cash or by qualified check. The rate is in the general instructions. The rules are explained in Backup Withholding and Form W-9: What to Know.
Your taxpayer number on the copy
The cooperative may truncate your taxpayer identification number on the statement it gives you. It may not truncate the number on any form it files with the IRS.
Checklist
- Compare box 1 and box 3 with the patronage statements and payment records you received during the year.
- Check box 4 for any federal income tax withheld.
- If box 8 or box 9 has an amount, read the section 199A rules before you claim the deduction.
- Check box 12 for each credit or deduction listed by type.
- Keep the statement with your records. See How Long Should I Keep My Tax Records?.
Sources: Sources: IRS, Instructions for Form 1099-PATR (Rev. April 2025) (https://www.irs.gov/pub/irs-prior/i1099ptr--2025.pdf); IRS, General Instructions for Certain Information Returns (2025) (https://www.irs.gov/pub/irs-prior/i1099gi--2025.pdf) This is general information, not advice about your specific return.
More guides on: Tax forms and income reporting
