Can I add a 1099-PATR sent by my house's water company for dividends from takeover? This is not business income. I do not see how to add it. Thank you!

[ecthelion]

I found link to 1099-PATR in the search, but there is no option that is correct for my circumstance, and when I select None Of The Above I am sent back to the main income page with no further options to continue adding the info. This 1099-PATR is not for business and not for a farm. It is technically a dividend from a co-op (the water utility company for our property). Is there a way to add this correctly?

[MonikaK1]

Most often, 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.

Otherwise, the amounts reported are taxable. Enter the form following the steps in TurboTax. Enter each line with an entry where prompted.

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 2022 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

See this help article for more information.

See here for more information from the IRS on this topic.

[ecthelion]

Thank you for your response.

In this case the 1099-K is not from either a farm or for business. It is from the water utility company co-op that provides water to our personal home. They were bought out by a bigger company and part of the sale money was disbursed to home owners who pay for water with this company. None of these options apply to me:

Self-employed business (Schedule C)

Farm (Schedule F)

Farm Rental (Form 4835

Business Credit

AMT adjustment

And so I must choose "None of the Above", but when I do that, it goes back to the Your Income and Expenses page, without asking further questions.

Is this a case of "came from property purchased for personal use?" and does not need to be reported? My understanding is that it was taxable. Any ideas?

[MonikaK1 · Accepted solution]

If your understanding from the payer is that this is a taxable payment similar to a dividend, you could choose to report it in TurboTax under Miscellaneous Income, Other Taxable Income. Enter an explanation in the space provided.

(In your last post you said "1099-K"; assuming you still meant 1099-PATR.)

@ecthelion 

[ecthelion]

Thank you, I will do that! 🙂

And yes, I apologize, I did mean 1099-PATR. I'm dealing with a separate 1099-K issue at the same time and my brain got confused.