Updated October 19, 2026. Quick answer: Boxes 6, 7, 8 and 9 of Form 1099-PATR carry section 199A deduction information from the cooperative. The recipient instructions say the amounts in boxes 7, 8 and 9 are information needed to compute your section 199A(a) deduction, and they point to the instructions for Form 8995 or 8995-A. Box 6 is a separate pass-through of the cooperative’s own deduction.
What boxes 6 to 9 report
These four boxes are different from the income boxes before them. The recipient instructions describe boxes 7, 8 and 9 this way: “Amounts shown in boxes 7, 8, and 9 are information needed to compute your section 199A(a) deduction.” “See the instructions for Form 8995 or 8995-A for more information.” Box 6 is described separately, in the table below. The boxes before and after are covered in Form 1099-PATR boxes 1, 2, 3 and 5 and Form 1099-PATR boxes 10 to 13, and the full list is in the Form 1099-PATR boxes guide.
The four boxes in the recipient’s words
Each row below is the form’s own description of the box.
| Box | What the recipient instructions say |
|---|---|
| Box 6, section 199A(g) deduction | “Shows your share of the cooperative’s section 199A(g) deduction passed through to you.” |
| Box 7, qualified payments | “Shows the amount of qualified payments paid to you on which the cooperative computed its section 199A(g) deduction.” |
| Box 8, qualified items | “Shows items received and reported in boxes 1, 2, 3, and 5 that may qualify as qualified items from trades or businesses that are not a specified service trade or business (SSTB) for purposes of the section 199A(a) deduction.” |
| Box 9, SSTB items | “Shows amounts received and reported in boxes 1, 2, 3, and 5 from an SSTB that may qualify as qualified items for purposes of the section 199A(a) deduction.” |
Boxes 8 and 9 do not add new money. They label amounts that already appear in boxes 1, 2, 3 and 5, sorted by whether the business behind them is a specified service trade or business. Box 7 and box 6 are tied to each other, because box 7 is the amount on which the cooperative computed the deduction passed through in box 6.
Box 6: the cooperative’s deduction
Box 6 comes with two conditions. The first: “The amount must have been designated in a written notice sent to you from the cooperative during the section 1382(d) payment period.” The second: “To claim the deduction, you must not be a C corporation.”
The payer’s instructions add that box 6 is for “specified agricultural and horticultural cooperatives only” and give a direction about the neighboring boxes: “Do not reduce the amounts reported in box 1 or box 3 by the amount reported in box 6.” So the box 6 figure sits beside the income boxes rather than coming out of them.
Box 7: the reduction warning
Box 7 carries the one instruction on this part of the form that can change a number you compute yourself: “If there is an amount in this box and the amount is related to a trade or business for which you are claiming a section 199A(a) deduction, you are required to compute a reduction to your deduction per section 199A(b)(7).”
The recipient copy points you to the instructions for Form 8995 or 8995-A for more information. The payer is told “You are required to provide this information whether or not you pass any of the section 199A(g) deduction through to the patrons.” so a box 7 amount can appear even when box 6 is empty.
Boxes 8 and 9: qualified items and SSTB items
The payer’s instructions describe the purpose of box 8 in terms of qualified items of “income, gain, deduction, or loss from qualified trades or businesses” and give examples of what is not a qualified item: “Examples of income that are not qualified items include taxexempt income, capital gains”. Box 9 is the same idea for businesses of a certain type, and the instructions say “Examples of SSTBs include the provision of services in the fields of health, law, accounting, etc.”
Both sets of instructions end the same way, with a pointer. Box 9 on the recipient copy says “Use Form 8995 or 8995-A to determine your section 199A(a) deduction.” The payer’s instructions send the payer to the same place, since for box 8 they direct it to “the Instructions for Form 8995-A, Qualified Business Income Deduction”.
Where it goes on the return
The form does not name a line for these boxes. It names two forms. The pages on Form 8995 and Form 8995-A explain those forms, and the deduction as it appears on the return is covered in Form 1040 line 13. A related section 199A figure on another information return is covered in Form 1099-DIV box 5, and the qualified business income deduction page gives more on the deduction.
Edition and box numbers
This page reads Form 1099-PATR (Rev. April 2025), the recipient copy with its instructions, together with the payer’s Instructions for Form 1099-PATR (Rev. April 2025). The payer’s instructions say “Use these instructions for tax year 2025 and subsequent years until a superseding revision is issued.” Even so, check the year and edition printed on the form you received, because box numbers can change between editions. The recipient copy also points to a place for later changes: “For the latest information about developments related to Form 1099-PATR and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form1099PATR.”
Common mistakes
- Treating boxes 7, 8 and 9 as extra income. The form calls them “information needed to compute your section 199A(a) deduction”.
- Ignoring box 7 when a deduction is claimed. The form says “you are required to compute a reduction to your deduction per section 199A(b)(7)”.
- Subtracting box 6 from the income boxes. The payer’s instructions say “Do not reduce the amounts reported in box 1 or box 3 by the amount reported in box 6.”
Related: Form 8995, Form 8995-A, Form 1040 line 13, the qualified business income deduction page, and Form 1099-DIV box 5.
Sources
- Form 1099-PATR, Taxable Distributions Received From Cooperatives (Rev. 2025), with Instructions for Recipient: https://www.irs.gov/pub/irs-pdf/f1099ptr.pdf
- Instructions for Form 1099-PATR: https://www.irs.gov/pub/irs-pdf/i1099ptr.pdf
- IRS: About Form 1099-PATR: https://www.irs.gov/forms-pubs/about-form-1099-patr
Read from the IRS documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.