Form 1099-PATR Domestic Production Activities Deduction from Cooperatives
According to the Form 1099-PATR instructions: Distributions you received from a cooperative may be includible in your income. Generally, if you are an individual, report any amounts shown in boxes 1, 2, 3, and 5 as income, unless nontaxable, on Schedule F (Form 1040), Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Form 4835.
 
Box 1. Shows patronage dividends paid to you during the year in cash, qualified written notices of allocation (at stated dollar value), or other property (not including nonqualified allocations). Any dividends paid on (1) property
bought for personal use or (2) capital assets or depreciable property used in your business are not taxable. However, if (2) applies, reduce the basis of the assets by this amount.
 
Box 2. Shows nonpatronage distributions paid to you during the year in cash, qualified written notices of allocation, or other property (not including nonqualified written notices of allocation).
 
Box 3. Shows per-unit retain allocations paid to you during the year in cash, qualified per-unit retain certificates, or other property.
 
Box 4. Shows backup withholding. Generally, a payer must backup withhold if you did not furnish your taxpayer identification number to the payer. See Form W-9 for information on backup withholding. Include this amount on your
income tax return as tax withheld.
  • In the Individual Module, this amount can be entered in Screen 14, Miscellaneous Income.  Under the Tax Withheld section, enter the amount in Federal Income Tax Withheld.
  • In the Partnership Module, this amount can be entered in Screen 22, Other Schedule K Items.  Use Other Credits (Ctrl + E) in the Credits section and select Code O for Backup Withholding.  This will appear on Line 15 of the Schedule K/K-1 (1065).
  • In the S-Corporation Module, this amount can be entered in Screen 26, Credits (Schedule K).  Select Schedule K Credits in the upper section of the left panel.  Scroll to or select Other Credits - Sch K Lns 12 & 13 (bottom of the screen).  In Other Credits (Ctrl+E), select Code O Backup Withholding and enter the amount.  This will appear on Line 13 of the Schedule K/K-1 (1120-S).
Box 5. Shows amounts you received when you redeemed nonqualified written notices of allocation and nonqualified per-unit retain allocations. Because these were not taxable when issued to you, you must report the redemption as ordinary income to the extent of the stated dollar value.

Box 6. Shows the deduction amount you may take based on your portion of patronage dividends or per-unit retain allocations (boxes 1 and 3) attributable to qualified production activities income. To claim the deduction amount, this amount must have been designated in a written notice sent to you from the cooperative within the payment period under section 1382(d). Enter on the appropriate line of Form 8903.

 
 
Boxes 7, 8, and 10. These boxes may show unused credits and deductions passed through to you by the cooperative. In general, if your only source for a credit is from the cooperative, you are not required to complete the source credit form or attach it to Form 3800. Therefore, the following credits may be reported directly on Form 3800: the renewable electricity and Indian coal production credit (Form 8835); the Indian employment credit (Form 8845); the low-sulfur diesel fuel production credit (Form 8896); and the energy efficient appliance credit (Form 8909). However, for the following credits, complete the forms shown and follow the instructions on the form for how to report the credit: the investment credit (Form 3468); the biodiesel and renewable diesel fuels credit (Form 8864); the work opportunity credit (Form 5884); the renewable electricity and Indian coal production credit (Form 8835, Section B); the cellulosic biofuel producer credit (Form 6478); and the agricultural chemicals security credit (Form 8931). For information on how to report other credits and deductions (including depreciation) that may be passed through to you, see the Form 1040 instructions, Form 8896, and Pub. 946. 
(For an individual return these credits can be entered in Screen 34, General Business & Vehicle Credits in the appropriate section using the Flow-Through credit as patron of a cooperative input field).

Box 9. Shows the alternative minimum tax (AMT) adjustment passed through to you by the cooperative. Report this amount on Form 6251 on the appropriate line in Part I. (Use Screen 40, Alternative Minimum Tax, Patrons adjustment (from cooperative) (code 18)).

Click here for instructions on entering in the Corporate Module (Form 1120).