Hi, Natural gas royalties are reported on Sch. E. Please follow the steps below to enter these into TurboTax.
1) Sign
into TurboTax Online
2) Start
your return if you have not yet or continue your return by click Taxes > Tax Timeline > Continue your return.
3) Click
search in the upper right hand
corner of the screen.
4) Type
“royalties” and click enter.
5) In
the search results click on “Jump to royalties”
After you enter the royalty income in Part I of Schedule E (Form
1040) [enter gross amount] section, it will be followed by the royalty
expenses section where you can enter things like production taxes,
mineral property taxes, production costs, depletion, etc.["More
expenses" radio button generally on depletion screen.]Generally
royalties are ordinary income.
Navigate to the Schedule E for the royalty and enter your expenses.
6) Follow
the prompts
