If I have a 1099 MISC for natural gas royalties and box 2 is a larger amount than I actually received in checks for the year. What amount should I enter?

[jhcoke]

At the bottom of the 1099 it says: For information only: 

Box 2 royalty less deducts

Then it gives the actual amount of checks received.

[PatriciaV]

Yes, you should enter the information from Form 1099-MISC as it appears on the form.

However, check for any additional information that accompanied Form 1099-MISC. The amount in Box 2 is the Gross Royalties you earned, But most gas leases deduct fees from your gross royalties, often production taxes and/or other charges. The total you actually deposited for the year was the net of the gross royalties less these expenses. Fortunately, you can report those deductions on your return, along with any property taxes you paid to the county or state.

See the post below for instructions on how to enter this info into TurboTax:

https://ttlc.intuit.com/replies/5167204

Click on "this question" to see screenshots.
Note that this post is from a previous tax year. Some menus and screens may have changed slightly.