U.S. · Tax forms

1099-PATR box 1 Patronage dividends.

Cash, qualified notices and property go in box 1; nonqualified notices do not.

Box 1 is the patron’s share of total patronage dividends paid in cash (including qualified or "consent" checks), qualified written notices of allocation (at face amount) and other property (except nonqualified written notices of allocation), allowable as a deduction under section 1382(b)(1).

IRS Instructions for Form 1099-PATR (Taxable Distributions Received From Cooperatives), Rev. April 2025Read November 2, 2026

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Form 1099-PATR boxes 1 to 5

BoxNameWhat the IRS instructions say
1Patronage dividendsShare of patronage dividends paid in cash (including qualified checks), qualified written notices of allocation (face amount) and other property, except nonqualified written notices of allocation, allowable as a deduction under section 1382(b)(1).
2Nonpatronage distributionsFarmers’ cooperatives exempt under section 521 only: amounts paid on a patronage basis from business done for the United States or from nonpatronage sources allowable as a deduction under section 1382(c)(2)(A), plus certain redemptions.
3Per-unit retain allocationsShare of per-unit retain allocations paid in cash, qualified per-unit retain certificates (face amount) and other property, allowable under section 1382(b)(3).
4Federal income tax withheldBackup withholding on patronage payments when the TIN was not furnished properly.
5Redeemed nonqualified noticesRedeemed nonqualified written notices of allocation paid as a patronage dividend and redeemed nonqualified per-unit retain certificates paid as a per-unit retain allocation.

What is left out of box 1

Nonqualified written notices of allocation are not in box 1 when issued. When the cooperative later redeems them, the redeemed amount is reported in box 5, not box 1. Amounts a farmers’ cooperative pays from nonpatronage sources or government business go in box 2 instead, and per-unit retain allocations go in box 3.

Backup withholding

Box 4 shows backup withholding where the patron did not furnish a TIN in the required manner. The instructions apply it to payments reportable in boxes 1, 2, 3 and 5 to the extent they are in cash or qualified check.

Worked example

Willow Creek Co-op pays patron Rosa a $1,200 patronage dividend in cash and a qualified written notice of allocation with a face amount of $800. It also issues a $500 nonqualified notice. Box 1 is $2,000 ($1,200 plus $800). The $500 nonqualified notice is not in box 1; if it is redeemed later, that redemption appears in box 5. The co-op and amounts are made up.

More from this set

Related pages: 1099-PATR Box 3, 1099-PATR Box 6. The 1099-R box 7 lookup and W-2 box 12 lookup cover the same kind of question for those forms.

Sources

IRS instructions as read on the date above; thresholds and revisions change. Names and amounts in worked examples are made up.

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Frequently asked questions

What is box 1 on Form 1099-PATR?

The patron’s share of total patronage dividends paid in cash, qualified written notices of allocation at face amount, and other property, except nonqualified written notices of allocation.

What is a qualified check?

The instructions refer to "qualified or consent checks" as one form of cash payment included in box 1. They do not define the term further.

Are nonqualified notices in box 1?

No. The instructions exclude nonqualified written notices of allocation. Redeemed ones are reported in box 5.

What is the difference between boxes 1 and 3?

Box 1 covers patronage dividends under section 1382(b)(1). Box 3 covers per-unit retain allocations under section 1382(b)(3).

What does box 4 mean?

Federal income tax withheld as backup withholding on patronage payments when the patron’s TIN was not furnished as required.

Not tax advice

This page summarizes IRS instructions, which are written mostly for the people who file the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.