Form 1099-MISC from oil companies is generally for oil and gas royalty income. This income is reported on Schedule E (the same form that is used to report rental income). You will need to upgrade to TurboTax Premier to complete your return with this income.
In TurboTax, follow these steps:
- Go to the Federal Taxes category.
- Go to the Wages and Income subcategory.
- Find the section labeled Rental Properties and Royalties, and click start on Rental Properties and Royalties (Sch E).
- Start a new property and indicate 'Royalty Property or payments", and enter a description and address.
- Answer the questions up until the screen that is labeled "What Type of Royalty Income?". Indicate what kind of property is generating the income. Most likely "Oil and Gas Royalty Income".
- Enter the income and any other taxes paid.
- TurboTax will calculate the allowable 15% depletion deduction. However, if there is a different depletion allowance, you can enter it on the screen labeled "Enter Your Depletion Information". Click Finished.
