It depends. It sounds like you received a 1099 MISC rather than a K-1 so all steps in your original post in steps 2-4 are irrelevant so I would ignore these if this is the case.
If you are working in Turbo Tax Online, here are the precise steps you must take to complete your return.
- Go to federal>wages and income>other common income>1099 MISC
- Answer all questions regarding your royalty to complete your royalty information.
- After answering these questions, you will receive a screen that will allow you to enter income. Here you make the selection that your income comes from a 1099 MISC.
- When you begin recording information in your 1099 MISC, be sure you check the Box indicating My form has other info in boxes 1-17. This will expand the screen and you can enter your state tax information in Boxes 16-18.
- Once the information has been completed, your 15% federal depletion percentage will be automatically deducted and the net amount of your Royalty income will be reported in line 8 of your 1040 and your federal and state AGI will reflect this adjustment.
- Once done, your additional 7% depletion allowance will be factored in and subtracted from your Oklahoma-sourced income.
If you are working in Turbo Tax Desktop, the procedure is a little more complicated. Rather than listing this, if you are working in the Software, let me know at @DaveF1006 and I will list precise steps for completing this in Desktop.
[Edited 02/19/24|2:55 pm PST]
@Tulane
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