U.S. · Tax forms
1099-PATR box 6 Section 199A(g) deduction.
What the IRS puts in box 6, how box 7 qualified payments cap it, and who can claim it.
Box 6 is the patron’s share of the section 199A(g) deduction that a specified agricultural or horticultural cooperative passes through. It cannot exceed 9% of the qualified payments in box 7. Box 6 amounts do not reduce what is reported in box 1 or box 3.
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Result
Boxes 6 to 9
| Box | Name | What the IRS instructions say |
|---|---|---|
| 6 | Section 199A(g) deduction | Specified agricultural or horticultural cooperatives only. The patron’s share of the deduction passed through, designated in a written notice sent within the payment period under section 1382(d). It cannot exceed 9% of the qualified payments in box 7. |
| 7 | Qualified payments | Specified agricultural or horticultural cooperatives only. The qualified payments paid to the patron, which must be provided whether or not any deduction is passed through (section 199A(b)(7)). |
| 8 | Section 199A(a) qualified items | Qualified items of income, gain, deduction or loss from qualified trades or businesses that are not specified service trades or businesses (SSTBs). Tax-exempt income and capital gains are examples that are not qualified items. |
| 9 | Section 199A(a) SSTB items | The box where items relating to SSTBs are reported separately from box 8. |
Who can claim a passed-through deduction
Only eligible taxpayers can claim a section 199A(g) deduction that is passed through. The instructions say that does not include a C corporation that is not itself a specified agricultural or horticultural cooperative. The cooperative must reduce its own section 1382 deduction by the amount it passes through to patrons.
Box 6 versus box 8
Box 6 relates to the cooperative’s section 199A(g) deduction. Box 8 is a separate section 199A(a) item: qualified items from non-SSTB trades or businesses, with SSTB items in box 9. The two are different deductions with different boxes.
Worked example
Prairie Grain Co-op, a specified agricultural cooperative, reports $50,000 in box 7 for patron Lee. The most it may allocate to Lee in box 6 is 9% of $50,000, or $4,500. If it allocates $3,000, box 6 shows $3,000, and Lee’s box 1 and box 3 amounts are not reduced by it. The co-op and amounts are made up.
More from this set
Related pages: 1099-PATR Box 1, 1099-PATR Box 3. 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 6, 7, 8 and 9. 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 6 on Form 1099-PATR?
The patron’s share of the section 199A(g) deduction claimed by a specified agricultural or horticultural cooperative and passed through to the patron.
What is the limit on box 6?
The deduction allocated to a patron cannot exceed 9% of the qualified payments reported in box 7.
Does box 6 reduce boxes 1 and 3?
No. The instructions say not to reduce the amounts in box 1 or box 3 by the box 6 amount.
Who is box 7 for?
Specified agricultural and horticultural cooperatives only, which must report qualified payments whether or not any deduction is passed through.
Can a C corporation claim a passed-through deduction?
Not unless it is itself a specified agricultural or horticultural cooperative, according to the instructions.
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.