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Deductions & credits
The Form 1099-NEC indicates a working interest in the activity. You will have to figure out if the amount in Box 1 is net the expenses. If so, then there is nothing to deduct from the expense notations. If they actually reported the gross amount to you, then the expenses can be used on Schedule C. You can add them together and put them in as one entry.
The Form 1099-MISC is royalties. You can use the 15% depletion allowance which is an easier expense to use and it doesn't require and documentation. Likewise I would add them together in one entry. It's the same scenario here, if you know they reported the gross royalty without taking any deductions you may be able to use the actual expenses. I would check with the company to see how they reported these payments to you.
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