Box 2 on 1099-MISC for Gas Royalties total is $598.88, but "Other Revenue Deductions" = $495.23. How can I deduct the $495.23? Do I owe tax on entire box 2 amount?

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The Internal Revenue Service (IRS) requires gross royalties amount input in Box 2 of the 1099-MISC. There is a tax return Schedule E available from the IRS for Royalties where you can list your deductions and taxes to reach your net taxable value, 

Then,Review the Schedule E in Turbotax after entering through the 1099 MISC incomes then you can enter things like production taxes, mineral property taxes, production costs, depletion, etc.["More expenses"  radio button generally on depletion screen.]