Most people won't need to make an entry on this page of your TurboTax interview.
Qualified
cooperative payments are generally reported as patronage dividends in box 1 of
Form 1099-PATR or per-unit retains allocations in box 3 of Form 1099-PATR. The
taxable portion of these payments are considered qualified cooperative
payments, and the net income and wages from this business that are allocated to
qualified cooperative payments must be reported separately.
The net income and
wages allocable to qualified payments may be allocated under any reasonable
method consistent with the facts and circumstances of the situation. A common
method for allocating these items is to use the gross receipts of a business.
For example, if a business has $100,000 of gross receipts, and half ($50,000)
of this amount comes from taxable qualified cooperative payments, then it is
generally reasonable to allocate half of the net income and half of the wages
from that business to the qualified payments. For example, if the business has
$30,000 of net income and paid $40,000 of wages, it would allocate $15,000 of
net income and $20,000 of wages to qualified payments.
