Even if you didn't receive a Form 1099-MISC from your royalty payer (Chesapeake), you still do need to declare any such income as taxable.
If you have a Form 1099-MISC, for royalty income from this same company, listed elsewhere on your tax return, then you can safely leave that alone and just enter this "other" royalty income as a separate item. While technically a taxpayer can combine more than one such royalty stream on the same property, it is mechanically easier to handle (and describe) the data entry process for a single, new, royalty item. Thus, that is how we will proceed.
Entering royalty income without a Form 1099-MISC, into TurboTax, is really quite straightforward.
First, have your tax return file open, and then locate the Find / Search box. Enter the exact words "royalty income" into the field, click the button, and a Jump To
link should appear beneath. Click on that and you'll be taken to the appropriate royalty data entry section of the program.
Next,
fill out your information as necessary for the royalty property, along
with total dollar amount of income you need to report. You can use the screen-capture image
below as a visual guide to begin (simply click to open).
Once completed, your income will show up on Form 1040
Schedule E, exactly where the royalty entry
should be. For confirmation, we ran a hypothetical royalty property example completely
through the program, to the very end, in order to verify that this
process works.
Thank you for asking this question.
