How can I get around TurboTax incorrectly trying to force Schedule C for oil and gas royalty income?

[shellyfetzer73]

I have added my income to Schedule E since this is not self-employment income.

[ThomasM125]

If you are entering  a Form 1099-MISC in TurboTax, in the Other Common Income section and then Form 1099-MISC, you will first have to enter it in box 2 as Royalties. On the next screen that says Source of 1099-MISC income, check the first box there, not the one that references self-employment income. If you do that the income will show up on Schedule E.

If you don't have a Form 1099-MISC, you have to enter the royalties in the rental income section of TurboTax and on the screen that says Is this a rental property or a royalty? check the Royalty property or payment box. 

Later you will come to a screen that says What type of royalty is this and you have to answer Oil and Gas Royalty income.

[user17730728093]

I am also getting forced to Schedule C with my royalty income in TurboTax Deluxe. I have deleted my 1099 and reentered a new one several times, following the instructions of ThomasM125. It insists on making me answer the question of what type of work this is? One issue that may be a factor is that line 3 of the 1099-Misc contains an about for Other Income. Help!

[ReneV4]

To avoid triggering the Schedule C interview prompts, ensure you are only entering the information as part of your rental or royalties in the Schedule E section and not separately in the 1099-MISC section.

First, you will need to delete the Form 1099-MISC:

1. Go to Tax Tools on the left panel within TurboTax, then Tools, then Delete a form
2. Find the 1099-MISC you entered and delete it

Next, to add the 1099-MISC on Schedule E: 

1. Go to Income, scroll down to Rentals, Royalties, and Farm and click the down arrow
2. Select Start/Revisit to the right of Rental Properties and Royalties (Schedule E)
3. Here, you can either select your rental to apply this Form 1099-MISC (if applicable), or enter it as royalties to go on Schedule E
4. Since you are inside a Schedule E profile, TurboTax will understand that this 1099-MISC only applies to rents/royalties and will stop asking about Schedule C