Deductions & credits

Royalty Properties expenses such as production tax is reported on the Schedule E under Rental Properties and Royalties.  To enter this into TurboTax, follow the steps below:

1. Sign in to TurboTax
2. Click Wages and Income
3. Scroll down to the Rentals, Royalties, and Farm and click start next to Rental Properties and Royalties (Sch E)
4. On the "Did you have any Income from Rentals or Royalty Property You Own" screen click Yes.
5. Click the Edit box next to the royalty.  Or you can click on the link Add Another Rental or Royalty.   
6. On the screen, Is This a Rental Property or Royalty?  be sure to mark the radio button next to Royalty property or payment. 
7. Continue through the screens, entering the requested information, until you reach Review Your [XX] Royalty Summary.  
8. On this screen, click the Start/Update box next to Expenses.  Continue to the Any Miscellaneous Expenses screen and enter the amount.