Only two things get reported on SCH E. Rental income, or Royalty income. Maybe you don't own rental property and therefore would not file a SCH E for that? If so, that would indicate you might have royalty income that you incorrectly reported as rental income. If you received a 1099-MISC with income reported in box 2, that's royalty income and does get reported on SCH E. But you have to tell the program it's royalty income. Otherwise, it defaults to rental income.
