I have a 1099-Misc for royalties of gas wells in PA. Chevron is leasing the land and we get royalties. Turbo tax want to put it as a business, it is not.

[cjk1]

This is just a lease, not a business.

[cjk1]

I have entered the 1099misc.  but when I hit continue, it wants me to answer ..

Investment income from property you own

Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C)

Again it is not a business.  how do I get past that part?

[AndreaC1]

You will need to delete the Schedule C. If you entered the 1099-MISC under the Self Employment section initially, it automatically creates a Schedule C. So go to My Account in the top right, choose Tools, Delete a form and scroll down the page to delete the Schedule C from there.

Then follow the steps below for #1 to jump to the right section to grab the 1099-MISC you need which should then put it under the Other Common Income section. Let me know if that works.

[cjk1]

OK, I deleted and started over.  when I get to the screen  below, what do I pick? We do on own the property, just the mineral rights.


Investment income from property you own

Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C)

[AndreaC1]

Ok, if you typed 1099-misc in Search box in top right, you then click "jump to 1099-misc" and that should have you on the page asking "Did you get a 1099-MISC?" and you choose Yes there.

The next page will ask you for info from that 1099-MISC and royalties go in box 2 on that page

[cjk1]

yes and when I enter the information in box 2, then continue.  it asks the 2 options I posted above.  they both seem to enter in self-employment

[AndreaC1]

It looks like you are in Deluxe and since you state you do not own the property, only mineral rights, you are going to choose Investment income and not Royalty income after you enter this 1099-MISC. This is going to prompt you to upgrade to Premier since it handles Schedule E which is where the royalty goes, in this instance.

[AndreaC1]

@cjk the Investment income option won't take you to self-employment. It just needs you to upgrade to Premier since this is going to Schedule E which is only supported in Premier or Self-Employed versions

[AndreaC1]

Investment Income includes amounts received from oil, gas or mineral properties when natural resources are extracted from property. And the royalties from intellectual property are only considered investment property income if you are not in the business of creating such works.

You would only choose Royalty income from your business option if, this is for income from oil, gas or mineral properties if you own and operate the property.

[cjk1]

ok, I updated.  now I still see self employment on income - how do I remove it now?

[cjk1]

I was able to get it off of the form, I think.  thanks for your help

[AndreaC1]

There are a couple different ways to enter this 1099-MISC. If you went into that section from Wages & Income and then Income and Expenses (under Self-Employment), you will not see Box 2 to enter Royalties and it will count as self-employment income. 

1. Use these steps to jump to that section to enter the 1099-MISC as other income. Be sure to follow these steps  so that you get to the correct section.

• Log into your account, click orange Take me to my return button
• Type 1099misc in the Search box in the top right corner
• Choose jump to 1099misc and this will take you to the Did you get a 1099-MISC page ( if you already entered it, you will see 1099-MISC Summary page)
• Click Yes ( of Edit next to that 1099-MISC if you already entered it) and you will be on the page that says Let's get the info from your 1099-MISC
• Scroll down to Box 2 - Royalites and enter that information from 1099-MISC there. 

If you have not entered the 1099-MISC at all yet, search for 1099misc in Search box and choose jump to 1099misc. This will take you to the Did you get a 1099-MISC? screen and you choose Yes and Box 2 will be on the next page. 

NOTE: See the screenshots below if you are using option #2 below

2. Or you can use these steps:

• Click on Federal Taxes, then Wages & Income
• Scroll down and you may need to click Skip to see all income first
• Find the Other Common Income (Tax refunds, 1099-G. 1099-MISC, 1099-K) section and click Show more next to it
• Then click Start/Revisit next to Form 1099-MISC and answer Yes to Did you get a 1099-MISC?
• On the Let's get the info from your 1099-MISC screen you should now see Box 2.

Hope this helps!

[AndreaC1]

@cjk did this not work for you?