1099-MISC royalty

Forum|Forum|3 years ago
February 20, 2023
1 reply
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My wife received a small (under $4) royalty payment from a TX oil company. The company includes a breakdown the gross payment and taxes withheld, but we haven't received a 1099-MISC. I have entered the payment on Sched E but should I show production and OK state taxes?

Best answer by ThomasM125

You should just report the $4 check received as you will be reporting the correct amount of income. Since a 1099 form will not be issued because of the size of the income, there will not be an issue with amounts on your tax return not matching what the IRS sees from the 1099 form.

MonikaK1

You can enter taxes paid to another state on your Federal tax return. If you had more than $1,000 of Oklahoma-sourced income as a nonresident, you would be required to file an Oklahoma tax return. See here for information from the Oklahoma DOR.

Production costs may or may not be deductible by you. Contact the payer for details.

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candl79Author

Thanks for your reply. We received less than $4 total last year from the company. My question is: should I simply show the $4 check received, or show the gross amount ($4.50), less taxes ($.50) that shows on the check receipt...that would have been included if we'd received the 1099?