Where do in enter royalty income in TurboTax? Schedule E or 1099-MIC? It is getting double counted, it seems.

Forum|Forum|6 years ago
June 5, 2019
1 reply
0 views

No text available

TurboTax Premier Online

PaulaM

Employee

If you received a 1099-MISC for royalty income, enter it under the Rental and Royalty section, and not in the Other Common income section. This will properly link the 1099-MISC with the schedule E. Enter in the Royalty Income section on the summary page. Delete the form if you entered it elsewhere.

Note: Be certain to deduct any production taxes, depletion (15%) and any other expenses you have. You will only want to pay taxes on the net amount you received, not the 1099-MISC gross. Any additional depletion that your state may allow (OK does) will be an adjustment under your state taxes.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

dharaway

I have entered royalty income and expenses on Schedule E, and it is effective. However, there is no place to enter State (OK) withholding tax on the 1099 in the Schedule E section. If I enter a 1099-MISC in other income, it double counts the royalty income. If I enter $1 there as a place holder, it says income reported must be at least as much as state withholding. This defeats the purpose of entering the state withholding, which is to get most of it refunded.

Carl11_2

Employee

When you enter a 1099-MISC, it will usually appear in several places. But it's only counted once. For example, if you enter a 1099-MISC for rental income or royalty income, it will appear in the SCH E section of the program, as well as the Other Income/1099-MISC section of the program. But it's still only counted once.