Deductions & credits

Also, in Interview step-by-step mode near the end of the Royalty Expense section is a catch-all category called "Miscellaneous Expenses".  You can enter a description "Production costs" and amount there, which will flow to the Sch E worksheet.  (see images below.)

 

You wrote:  "Your Schedule E Worksheet provides for taxes withheld, but not for depletion and Production Costs,..."

 

The Schedule E Worksheet DOES have an entry place for both depletion and the the production costs.  See the third screen image below.

.

royalty1.pngroyalty2.pngschE.png