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Box 6. Section 199A(g) Deduction

For specified agricultural and horticultural cooperatives only, enter the patron's share of the amount of section 199A(g) deduction claimed by the cooperative under section 199A(g) and passed through to the patron. This amount must have been designated in a written notice sent to the patron from the cooperative within the payment period under section 1382(d). The deduction allocated to each patron cannot exceed 9% of the qualified payments reported in box 7 and cannot be passed through to patrons that are C corporations. Do not reduce the amounts reported in box 1 or box 3 by the amount reported in box 6.

Note.

The cooperative must reduce its section 1382 deduction by the amount of the section 199A(g) deduction passed through to its patrons.

Box 7. Qualified Payments

For specified agricultural and horticultural cooperatives only, enter the qualified payments paid to the patron. You are required to provide this information whether or not you pass any of the domestic production activities deduction (DPAD) through to the patrons. See section 199A(b)(7).

Box 8. Section 199A(a) Qualified Items

Enter amounts reported to the patrons that are qualified items of income, gain, deduction, or loss from qualified trades or businesses that are not a specified service trade or business (SSTB) for purposes of section 199A. Examples of income that are not qualified items include tax-exempt income, capital gains, and income that isn't effectively connected with the conduct of a trade or business within the United States. See the Instructions for Form 8995-A for more information on qualified items. Report items relating to SSTBs separately in box 9.

Instructions for Form 1099PATR

Most often, your Form 1099-PATR reports dividends associated with a farm or cooperative (co-op). You can also receive a 1099-PATR for other reasons (for example, a land bank mortgage or backup withholdings made on your behalf).

Tip: If the dividends in Box 1 of your 1099-PATR came from property purchased for personal use (or capital assets or depreciable property used in your business), you don't have to enter your 1099-PATR. Keep it with your tax records, though.

To enter a 1099-PATR for farm or co-op dividends:

1. Open (continue) your return in TurboTax.
2. Inside TurboTax, search for 1099-PATR (be sure to include the dash) and then select the Jump to link in the search results.
3. Follow the instructions to enter info about your farm.
4. When you get to Your Farming Income and Expenses, you will enter your 1099-PATR info in Livestock, grain, produce, custom work, co-ops.

If your 1099-PATR isn't for farm or co-op dividends, it gets entered as general business income:

1. Open (continue) your return in TurboTax.
2. Inside TurboTax, search for business (schedule c) (use this exact phrase) and then select the Jump to link in the search results.
3. When asked Did you have any self-employment income or expenses? answer Yes.
   1. If you'd previously entered self-employed income, you'll come to Your 2020 self-employed work summary. Select Add another line of work to enter information about your farm.
4. Follow the instructions to enter info about your farm.
5. When you get to Let's enter the income for your (type of farming) work, select Other self-employed income and Continue.
6. Enter the information from your 1099-PATR on the Tell us about other self-employed income screen.