something important that's not on the 1099-MISC - the Depletion! deduction. To calculate that you'll have to go to the royalty website. It'll have either a depletion calculator or a booklet that tells you how to compute this deduction. Do you pay the taxes directly to WV or are they deducted from your royalty payments?
the royalties are reported on Schedule E - gross (box 2) and then the deductions
"Other Deductions" and "Production taxes" amounts which account for almost half the total royalties amount. Can these amounts be deducted? YES on Schedule E. As for the county taxes if paid directly to them they would be deductible but if deducted from the royalty payment, they're probably reflected on that 1099
