Question

1099-misc from Fracking

Forum|Forum|4 years ago
February 4, 2022
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My 1099-Misc is not in a form that I am used to seeing. It shows Gross, Taxes and Net. The first line under payment type it shows RI2 and the net is minus the taxes. On the next line, it says Box 2 royalties and the net total is the gross amount before taxes. I'm not sure which number to put into Turbo tax. I don't have a box 1 or 3 listed and is there a place to put the state taxes later?

J

JulieS

Yes, all of that information can be entered in TurboTax. This is where to start:

Select Federal from the left side menu.
Select Wages and Income toward the top left.
Scroll down/ expand the list and look for Rentals and Royalties.
Expand that section and find Rental Properties and Royalties (Sch E).
Click Start on the right.
Answer the first question Yes.
Select Royalties on the right, click Continue.
Enter the name and address from your 1099-MISC.
Select Oil & Gas as your type and click Continue.
Answer the next few questions.
When you get the screen that says, Let's enter the income from your 1099-MISC, enter your gross royalty in box 2.
If your tax listed is federal income tax withheld, enter it in box 4.
If it is state income tax withheld, use boxes 15 to 17 to enter that information.
If it is a different kind of tax, continue to the screen that says, What expenses and assets did you have for ? , at the top.
Scroll down a bit and check the box next to Other taxes.
Click Continue.
Scroll down to Other Taxes and click start.
Answer the remaining questions in the section.