2024: I received two 1099-MISC from a gas lease. They both pertain to the same property. One 1099 reports income from a bonus payment that is listed as "rental" in Box 1. The other 1099 reports royalty income in Box 2. I am an owner of mineral rights and NOT an owner of the above ground real estate. Each 1099 was entered separately (i.e., I entered two separate 1099-MISC; one for the rental and one for the royalty income). This creates two separate Schedule E worksheets -- one for the rental and one for the royalty. The rental one is the one creating the problem.
Upon review, I get an error regarding the bonus payment reporting that I must show the "rental" income and "royalty" income as separate properties on the Schedule E. The error is flagged on the rental worksheet. However, when I look at the Schedule E the rental and royalty income are listed as separate properties in columns A & B. So they appear to be entered correctly but I get this weird error indicating I have to show them separately -- but they are already entered separately.
