How do I report 1099-PATR on my taxes when it's not for farming or business?

The 1099-PATR is for "Patronage Dividends" which are distributions from cooperatives to their members/customers. Many agricultural credit unions and rural banks are actually set up as cooperatives, so they distribute profits back to their members - that's what you're receiving. For personal (non-business) patronage dividends, you'll need to report this as "Other Income" on Schedule 1, Line 8z. In most tax software, look for a section called "Less Common Income" or "Other Income" and select patronage dividends or 1099-PATR. The software should then walk you through entering the information from your form. The good news is that personal patronage dividends are generally fully taxable but simple to report - you don't need any of the special provisions that apply to farmers or businesses.

I ran into this exact situation last year! After spending hours trying to figure it out myself, I ended up using taxr.ai (https://taxr.ai) to help me understand my 1099-PATR. I just uploaded my form, and it immediately identified it as patronage dividends from my credit union and explained exactly how to report it. The tool told me where to enter it in my tax software and even explained why I was receiving these dividends in the first place - something about being a member/customer of a cooperative financial institution. Saved me so much stress and confusion!

Just wanted to follow up about my experience with taxr.ai. After expressing skepticism in my last comment, I decided to try it myself with my own 1099-PATR that I've been stuck on. I'm honestly impressed! It immediately identified that Box 1 amount needed to go on Schedule 1 as other income, and explained that the other boxes on my form didn't apply to my situation since I wasn't using the property for business. The explanations were clear and referenced specific IRS publications. It even explained that my bank is structured as a cooperative, which I had no idea about. This actually helped me understand why I was getting these weird dividends in the first place. Definitely saved me from making an error on my return!

If you're still confused after trying to enter your 1099-PATR, you might want to call the IRS directly for guidance. After struggling with a similar situation last year, I discovered Claimyr (https://claimyr.com) which got me through to an actual IRS agent in about 15 minutes instead of the usual hours-long wait. I was skeptical at first, but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent I spoke with walked me through exactly how to report my cooperative dividend and confirmed it should go on Schedule 1 as Other Income. Having that direct confirmation from the IRS gave me total peace of mind when filing.

I need to eat my words from my previous comment. After venting my frustration about IRS wait times, I decided to try Claimyr out of desperation since I was still confused about my 1099-PATR. I literally got connected to an IRS agent in 12 minutes after trying for DAYS on my own. The agent confirmed that for my personal land loan, the patronage dividend goes on Schedule 1 as Other Income. She even explained that these dividends are common with cooperative financial institutions and that I shouldn't expect any additional forms beyond the 1099-PATR. Honestly worth it just for the time saved and peace of mind knowing I'm filing correctly.

Just to add another perspective - I've received 1099-PATRs for years from my rural electric cooperative. It's basically the same concept as what you're experiencing with your bank. These cooperatives operate "at cost" and return excess margins to their members. If you use tax software like TurboTax or H&R Block, they usually have a specific section for "Uncommon or Less Common Income" where you can select 1099-PATR. Don't try to force it into a business section if it's personal - that could create more complications.

Has anyone noticed that the amount on their 1099-PATR is usually pretty small compared to their overall banking relationship? I got one for only $42 last year and wondered if it was even worth the paperwork they had to generate lol.

I went through this same confusion last year! The key thing to remember is that even though you received the 1099-PATR through your land loan relationship, you're still required to report it as taxable income. One thing that helped me was understanding that the bank issuing your 1099-PATR is likely structured as a cooperative or credit union, which is why they distribute these patronage dividends to customers. It's essentially their way of sharing profits with members. For your $175, you'll definitely want to report it properly. As others mentioned, it goes on Schedule 1 as "Other Income." In TurboTax, look for the "Less Common Income" section and select "Patronage Dividends" or "1099-PATR." The software will walk you through entering the payer information and amount. Don't stress too much about it - it's actually one of the simpler forms to deal with once you know where it goes!

I'm going through the exact same situation right now! I received a 1099-PATR from my farm credit association for a personal land purchase loan, and I was completely baffled about what to do with it. After reading through all these responses, I feel so much better knowing this is a common situation. I had no idea that many agricultural lenders are structured as cooperatives - that explains why I got that surprise dividend check last month that seemed to come out of nowhere. It sounds like the consensus is pretty clear: report it as "Other Income" on Schedule 1, and most tax software will have a specific section for 1099-PATR or patronage dividends under "Less Common Income" or similar. The fact that it's for a personal loan rather than business use actually makes it simpler to report. Thanks to everyone who shared their experiences - it's really helpful to know I'm not the only one who was confused by this form! Now I can stop procrastinating on my tax return and actually get it filed.