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golanruv
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Is Oil & gas Royalties Income subject to SS taxes

Is oil & gas royalties income reported on Form1099-MISC, line 2, subjected to Social Security taxes?

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Anonymous
Not applicable

Is Oil & gas Royalties Income subject to SS taxes

if the royalties are from a royalty trust which you hold as an investment then no they'll get reported on schedule E page 1,  

 

When you allow an oil and gas company to extract resources from your property, your compensation often includes two elements. First, you may receive lease bonus payments, which are paid at the time of the lease's signing and often correspond to the amount of land used. Second, you'll get regular royalties that give you a cut of the revenue earned from your oil and gas extracted from your property. You'll pay federal income tax on oil and gas royalties and lease bonuses, but you aren't held responsible for self-employment taxes like you would be if you ran an oil and gas business.

 

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