Question

We received a 1099-S for $250 for drilling on our property. Do we need to claim this?

We did not sell any property.

Yes, you have to report this income.

I would report it as Other Reportable Income.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income
Continue and locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.