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New Member
posted Jun 5, 2019 11:42:25 AM

I received a 1099-Misc OMB No. 1545-0115 for royalties. However, I cannot find a place to put the amount for Prod./Taxes that was deducted from my royalties.

I cannot find any place to enter the Prod./Taxes that was deducted from my royalties as Prod./Taxes.

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2 Replies
New Member
Jun 5, 2019 11:42:26 AM

The 1099-MISC for gas royalties is entered under the "Rental Properties and Royalties" section, under the "Wages and Income" tab.

(If you enter it under the 1099-MISC and Other Common Income section, it will think you have a business).

In the first interview screen that asks for information on the 1099-MISC ("Is this a Rental Property or Royalty?"), you must check  "Royalty property or payment".

You will enter expenses (e.g. Production Taxes) from the payer's statement later in the Royalty Income and Expenses interview.

On the "Enter Your Depletion" screen, the program will calculate what your depletion expense can be. Unless you have chosen another method in the past, you can leave that number as it is. On that screen, select the "More Expenses" box at the bottom right.

The next screen asks if you paid anyone more than $600 or more for work related to this property (uncommon). If you answer "No" and "select "Continue", you will have have a screen asking you how to enter your expenses (i.e. what the payer showed as expenses on the statement). Select "Enter my royalty info myself" and then "Continue".

Two screens later  you will have a Royalty Summary screen. You enter the expenses from the statement in the Expense interview (Depletion is already there).

New Member
Jul 31, 2019 10:07:12 AM

Where does it show up in the 2019 form 1040