I receive income from royalties and pay taxes in that county on those royalties. Where do I claim these taxes?

[PaulaM · Accepted solution]

Enter the county taxes paid as a common expense on schedule E under the Rental and Royalty property section.

Note: If this is for an Oil & Gas royalty, be certain to deduct any production taxes, depletion (15%) and any other expenses you have. You will only want to pay taxes on the net amount you received, not the 1099-MISC gross. Any additional depletion that your state may allow (OK does) will be an adjustment under your state taxes.