@BB_0
As I said earlier, I cannot reproduce your problem. When I try it, the negative other income exactly offsets the Schedule E income. I think there must be some side effect of the Schedule E income that is affecting something else in your tax return (or you're doing something wrong when you answer the Schedule E questions). Let's try to pin it down. You have to look at specific lines on Form 1040 and Schedule 1.
What line of Form 1040 are you calling the "baseline taxes"? I would think you would be looking at line 16.
Before you look at the tax, you should look at the income amounts, either total income on Form 1040 line 9, or taxable income on Form 1040 line 15. Do those two lines go back to the original amount after you enter the 1099-MISC and the negative other income? If so, but the tax on line 16 does not go back to the original amount, then we have to dig into the tax calculation.
Now look at Schedule 1. Does Schedule 1 have $100,000 on line 5 and -$100,000 on line 8z? If the -$100,000 is not on line 8z, what line of Schedule 1 is it on?
Do you have any other Schedule E income besides the $100,000 of royalties?
Do you have any other entries in Part I of Schedule 1 besides lines 5 and 8z? If so, which lines, and what amounts?
Are you using TurboTax Online or the CD/Download TurboTax software?
Based on your answers to these questions either we will see what's going on, or we will investigate further.
