How can I create a 2nd Schedule E worksheet? I have an error because both rental property income and royalties from an investment are showing up on the same Schedule E.

To create a second Schedule E for your royalty income, you will need to revisit the Rentals, Royalties, and Farm interview.  To do this, 

• In your open Federal return, choose the Wages & Income tab, Then scroll down to Rental Properties and Royalties (Sch E) and Edit/Add.
• On the next page Income from Rentals or Royalty Property You Own, say Yes.
• Answer the Real Estate Professional question and Continue.
• The next page is Rental and Royalty Summary.  Click the blue link under the summary that says + Add Another Rental or Royalty.
• On the next page Is This a Rental Property or Royalty? choose the radio button for Royalty property or payment and continue through the interview.

Be sure to go back and remove the royalty information from the first Schedule E by choosing Edit on that property.

where is the ability to add a 2nd and 3rd schedule E on the 2022 Turbo tax?  I can't find it.  I was unable to transfer my 2021 tax return from last year because I got a new computer.  Now I have to start from scratch!  It's very frustrating!!! to have to add  the schedule E

You'll add the properties related to the schedule E under income.  Scroll down to the investment income section.  Schedule E handles three properties.  If you exceed the three properties then the system will automatically add another schedule for you.

 

@mcfannfam1

You do not file individual SCH E's for each passive income activity. It's unnecessary and I'm not aware of any tax program (not just TurboTax) that can do that *CORRECTLY*.

If you have rental income from a single rental activity and royalty income from a single royalty activity, you only use "ONE" single SCH E to report them both. They are reported separately on that one SCH E.

A single SCH E is used to report up to three rental & royalty income activities, with each activity appearing in their own lettered row or column. Not separate numbered lines.

So rental activity would be in row/column A with the royalty activity in row/column B.

If you have a single 1099-MISC with income reported in both box 1 and box 2, then you will enter it "AS IF" you received two physically separate 1099-MISC forms. Enter "AS IF" one form only reported income in box 1 (that would be the rental income) and then enter another form "AS IF" you received a physically separate 1099-MISC with the income only reported in box 2. That would be the royalty income.

Once you finished working through the rental and royalty income seciton completely, you'll see rental activity reflected in the the "A" rows/columns and royalty income activity in the "B" rows/columns.

All rental income will be on line 23a and all royalty income will be on line 23b.

If/when asked for an "address" for the royalty activity, you'll find it can't be "exactly" the same as the rental activity. No big deal for you to use your home address, or you can just abbreviate the address for the royalty activity (RD instead of ROAD or ST instead of STREET for example.) That way, they don't match "exactly" but are still correct.