@DaveF1006 , thank you for going through this with me in great length and detail. I want to let you know under Oklahoma Income > Rental, Partnerships, Etc. This is where I need to enter in $1200 - %15 depletion = $1020. (Note: Schedule A-H, Line 12 shows Rental real estate, royalties, partnerships, etc.) What is misleading is TT does not expand the description. Instead I discovered this while in Forms mode > Schedule A-H > Schedule 511-NR-1 Line 12. This is why I keep mentioning rental when in actuality, it also includes royalties.
In Schedule A-H > Schedule 511-NR-B: Oklahoma Subtractions, Line 8 is Additional depletion. This is where I enter $84 in both columns. What I notice is if I go back to Oklahoma Adjustments, the $84 that is included in Schedule A-H is now also automatically entered under Income from an oil or gas well that is subject to depletion.
I have reviewed my 1099-MISC and Line 2 does say Royalties. I have not seen a screen to ask me which type of Royalty Income this is and where I can type in "Oil & Gas".
@DaveF1006 , you have been an extremely helpful and patient tax consultant. I am truly grateful.
Tulane
