If you go to the rental and Royalties income section, there is also a 1099 misc form there too. The line numbers are wrong on that one. Last year when I entered the 1099Misc it transferred the income to the royalties automatically, thus not doubling the income.
Since the 1099 misc under royalties uses line 15 instead of 16 for state tax withheld, it didn't pick it up on the state return, so I entered only the withholding on the 1099misc income and the rest on the 1099misc under royalties since that is where the expenses for the royalties can be reported.
