I made $282 in oil & gas royalties and received a 1099-MISC. I had to upgrade to TurboTax Premier to report $282 in income, why am I required to figure out depletion?

[trishakemper]

How do I figure depletion?

[JulieS]

Here is how to enter this in TurboTax:

1. Login and continue your return.
2. Select Federal from the left side menu.
3. On the Income & Expenses summary, look for Rental Properties and Royalties (Sch E), click Edit/ Add to the right.
4. Answer the first question Yes.
5. Add or Edit your Royalty property.
6. Enter the location information, click Continue.
7. Under What Type of Royalty Income? select Oil and Gas Royalty Income, click Continue.
8. Enter your 1099-MISC, click Continue.
9. Your Depletion should calculate automatically, but if it doesn't, it is 15% of your gross income, or in your case $42.
10. If you have  additional expenses, select More Expenses, otherwise Finished, in the lower right. 

[jamiewindham]

I did all this and now I can't efile because of a problem on the Qualified Business Income Deduction Smart Worksheet  or maybe it's the Schedule E Worksheet - both are referenced. Anyway, the missing information is there's no entry for Qual business - yes or Qual business - no.

I believe this is a bug. Is there a workaround?

[LeonardS]

Did you report your 1099-MISC for your oil & gas royalties on schedule E?  They should be reported as investment income which is not eligible for QBI and not miscellaneous earned income.

[jamiewindham]

I haven't seen a way to get to Schedule E via Turbo Tax Online. How would you do that?

At this point, I feel stuck. I've already paid to efile, but the only work around that was ever suggested was to print the return, check the box and file a paper return.

[LeonardS]

To access Schedule E in TurboTax enter schedule E in the search box in the upper right corner.  Click on Jump to Schedule E in the results window.  The first section in Schedule E has to do with rental properties, skip past the rental questions until you come to the royalties section.  Follow the prompts to enter your information.

[Martha Sears]

Oil and gas royalties have their own fields in TT and it is not under Investment Income.