1. Does she need to file a state income tax form for Oklahoma? Yes, she will need to file an OK state nonresident return, if she received more than $1,000, as this would be considered OK source income.
2. TurboTax is setting up a Sch E as though she owned a rental property and wants the address. What entry is used for mineral rights only, no address? Schedule E is for investment property/income, it should not be going to rental property. It should be considered royalty income in box 2 of the 1099-Misc. You can enter whatever address info you have such as the street or town. You do not need a specific street address, you can enter just the name of the nearest road.
Mineral Rights
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