Q: What is the payment limitation for PATHH?
The sum of PATHH payments that a person or legal entity, including a joint venture or general partnership may directly receive, is $125,000. [KJ-FWD1] USDA may reduce this payment limitation if total calculated payments exceed the total $200 million in funding allocated for the program.
Like all other programs administered by FSA, payments made to a PATHH applicant that is a Indian Tribe or Tribal organization, as defined in section 4(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304), will not be subject to payment limitation.
Q. Can PATHH payments be withheld to satisfy a debt?
No. These payments will not be subject to administrative offset. This means the payments will not be withheld to satisfy any USDA debts nor will they be offset by Treasury.
Q. Are PATHH payments going to be counted as taxable income?
The Farm Service Agency reports program payments to the Internal Revenue Service and program participants on a CCC-1099-G. This report is a service to help program participants report taxable income. Please consult with the IRS or your tax preparer for any additional questions on how this income impacts your business.