Question

Pennsylvania Royalty Income

Forum|Forum|1 year ago
February 7, 2025
1 reply
0 views

When royalty income is entered from the 1099-Misc on the federal return it is not transferred properly to the state return. Instead of showing up as royalty income, it shows up as Business income which is incorrect. As a result the Pennsylvania return is not correct.

TurboTax Business Windows

M

mesquitebean

Employee

Under your question it shows you are using TurboTax Business. Is that correct? Or is that incorrect and you are working on a personal return in the Home and Business product?

You didn't say what type of royalty, so I'll assume mineral property.

I can't help you with TurboTax Business, but in the Home and Business product after entering a 1099-MISC for royalty, a subsequent screen asks if it is from investment property or if it is related to one's business, and then it knows which topic/form to flow to. If this is investment property, did you see any such screen where you could indicate that?

C

ChrisY1966Author

I am using TurboTax Business. The royalties are from oil and gas. The royalties are paid through a partnership LLC and that is probably why it thinks it is business income as opposed to royalty income.