Yes, when you report this as Royalty income, There is a place in Turbo Tax where you can report expenses against your royalty income. County tax is an expense you can report to reduce your taxable income of your Royalty.
1)Select the federal tab, then go to wages and income.
2) Scroll to Rentals, Royalties and Farms click on the drop down that says show more
3) Select Rental Properties and Royalties (Sch E) Select start
4) Then you will go through a series of questions regarding your royalty property. Here is where you will enter your income or expenses. Note, your income will probably be already entered from another tax document. Here you would just enter your royalty information and enter the tax as an expense once you reach the expense portion of your royalty income.
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