Solved: Can I report production tax expenses for oil royalties? Turbo tax only allows entry for depletion tax.
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Can I report production tax expenses for oil royalties? Turbo tax only allows entry for depletion tax.

I have a production tax taken each month from my royalty check but its not reported on the 1099-misc so I wanted to deduct it as an expense but turbo tax does not have a way to enter it that I can find.

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Can I report production tax expenses for oil royalties? Turbo tax only allows entry for depletion tax.

As you are entering the royalty for the first time, you can include Taxes Paid on the Enter Your Royalty Information screen (just below the royalty income box).


If you have already entered information on the royalty you can go back and enter the production tax expenses for your oil royalty by following these steps:

  1. Click on Federal  > Wages & Income 
  2. Scroll down to the Rentals, Royalties, and Farm section and click on the Start/Revisit box next to Rental Properties and Royalties (Sch E).   [See Screenshot #1, below.]
  3. On the Income from Rentals or Royalty Property You Own screen click Yes.
  4. If you have already started adding information about your rental, you will come to the Rental and Royalty Summary screen.  Click the Edit box next to the royalty.  Or you can click on the link Add Another Rental or Royalty.  [Screenshot #2] 
  5. If you haven't entered any rental or royalty information you will see the screen, Is This a Rental Property or Royalty?  Be sure to mark the radio button next to Royalty property or payment.  Continue through the screens, entering the requested information, until you reach Review Your [XX] Royalty Summary.  [Screenshot #3]
  6. On the screen, Review Your [XX] Royalty Summary, click on the Start/Update box next to Expenses. 
  7. You can enter the taxes on the next screen, Enter Common Expenses[Screenshot #4]

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Highlighted
Level 14

Can I report production tax expenses for oil royalties? Turbo tax only allows entry for depletion tax.

As you are entering the royalty for the first time, you can include Taxes Paid on the Enter Your Royalty Information screen (just below the royalty income box).


If you have already entered information on the royalty you can go back and enter the production tax expenses for your oil royalty by following these steps:

  1. Click on Federal  > Wages & Income 
  2. Scroll down to the Rentals, Royalties, and Farm section and click on the Start/Revisit box next to Rental Properties and Royalties (Sch E).   [See Screenshot #1, below.]
  3. On the Income from Rentals or Royalty Property You Own screen click Yes.
  4. If you have already started adding information about your rental, you will come to the Rental and Royalty Summary screen.  Click the Edit box next to the royalty.  Or you can click on the link Add Another Rental or Royalty.  [Screenshot #2] 
  5. If you haven't entered any rental or royalty information you will see the screen, Is This a Rental Property or Royalty?  Be sure to mark the radio button next to Royalty property or payment.  Continue through the screens, entering the requested information, until you reach Review Your [XX] Royalty Summary.  [Screenshot #3]
  6. On the screen, Review Your [XX] Royalty Summary, click on the Start/Update box next to Expenses. 
  7. You can enter the taxes on the next screen, Enter Common Expenses[Screenshot #4]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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