U.S. · Tax forms
1099-PATR box 3 Per-unit retain allocations.
How box 3 differs from box 1 and where redeemed certificates show up.
Box 3 is the patron’s share of total per-unit retain allocations paid in cash, qualified per-unit retain certificates (face amount) and other property (except nonqualified per-unit retain certificates), allowable as a deduction under section 1382(b)(3).
Look it up
Result
Boxes tied to per-unit retains
| Box | Name | What the IRS instructions say |
|---|---|---|
| 3 | Per-unit retain allocations | Share of per-unit retain allocations paid in cash, qualified per-unit retain certificates (face amount) and other property, except nonqualified per-unit retain certificates, allowable under section 1382(b)(3). |
| 5 | Redeemed nonqualified notices | Amount of redeemed nonqualified per-unit retain certificates paid as a per-unit retain allocation (and redeemed nonqualified written notices paid as a patronage dividend). |
| 1 | Patronage dividends | The separate box for patronage dividends under section 1382(b)(1). |
| 6 | Section 199A(g) deduction | For specified agricultural or horticultural cooperatives only. The instructions say not to reduce box 1 or box 3 by the box 6 amount. |
Box 3 versus box 1
Both boxes list cash, qualified instruments at face amount and other property, but they cover different allocations. Box 1 is patronage dividends under section 1382(b)(1), and box 3 is per-unit retain allocations under section 1382(b)(3). Nonqualified per-unit retain certificates are not in box 3 when issued; a redemption is reported in box 5.
Boxes 4 and 6
Backup withholding in box 4 applies to payments reportable in boxes 1, 2, 3 and 5, to the extent paid in cash or qualified check. A section 199A(g) deduction passed through in box 6 does not reduce the amount in box 3.
Worked example
Cedar Valley Co-op pays patron Tom $640 in cash as a per-unit retain allocation and a qualified per-unit retain certificate with a face amount of $360. It also issues a $250 nonqualified per-unit retain certificate. Box 3 shows $1,000. The $250 is not in box 3. When the co-op later redeems it, the redeemed amount appears in box 5 for that year. The co-op and amounts are made up.
More from this set
Related pages: 1099-PATR Box 1, 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
- Instructions for Form 1099-PATR (Taxable Distributions Received From Cooperatives) (Rev. April 2025): Boxes 1, 3, 4, 5 and 6. Read November 2, 2026.
IRS instructions as read on the date above; thresholds and revisions change. Names and amounts in worked examples are made up.
Frequently asked questions
What is box 3 on Form 1099-PATR?
The patron’s share of per-unit retain allocations paid in cash, qualified per-unit retain certificates at face amount, and other property.
What is a per-unit retain allocation?
The instructions only describe the box by reference to section 1382(b)(3). A cooperative, the form instructions or a tax preparer can explain how your co-op uses it.
Are nonqualified certificates in box 3?
No. They are excluded; if redeemed, they are reported in box 5.
Does box 6 reduce box 3?
No. The instructions say not to reduce the amounts reported in box 1 or box 3 by the amount in box 6.
Can backup withholding apply to box 3?
Yes. Box 4 backup withholding covers payments reportable in boxes 1, 2, 3 and 5 to the extent paid in cash or qualified check.
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.