What form should be used for a 1099misc royalty payment from oil & gas production?

Forum|Forum|1 year ago
March 3, 2025
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KrisD15

That would be entered on Schedule E.

In TurboTax, go to the Income section

Find Rental Properties and Royalties START

Continue through the interview,

Be sure to select "Royalty property or payment" on the "Is This a Rental Property or Royalty?" screen

You will get to a "Enter Your Royalty Information" screen which is where you will report the amount on the 1099-MISC

Continue and enter your depletion number

Finish this interview

The income will be reported on Schedule E and included with your tax return.

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mesquitebean

Employee

@ramseydavid

TIP:

In addition to depletion, as you go through the Royalty Expenses interview don't forget to enter other royalty expenses, such as any taxes such as severance taxes, county mineral property tax, etc. and other expenses like production costs (pipeline charges, marketing charges, etc.) that oil/gas companies like to deduct from your royalty payments.