Form 1099-Patr

[deb514]

Hello.

Form 1099-PATR has amounts in Box 1 - Patronage Dividends and Box 5 - Redeemed nonqualified notices.  Are both of these amounts taxable or is Box 5 included in the amount in Box 1.  I have not encountered this before so looking for advice.

Thank you in advance!

Deb

[The_AntiTax_Man]

@deb514  Yes, Form 1099-PATR amounts in Box1 AND Box 5 are taxable in the current year.  You should see these amounts in the client's books. 

The amount in box 1 was declared and paid in the current year.

The amount in box 5 was declared in a prior year, but was not shown as taxable in the prior year.  It has been paid out in the current year having never been taxed in the prior year and the coop is therefore reporting it as taxable in the current year.

[Terry53029]

If you are filling schedule F for your client I agree with Antman, but if it was issued just because you shopped at the co-op and not connected with your business then don't put it on the tax return, as it is not taxable

[deb514]

Ok that makes sense!  Thank you!!