Negative deduction amount on 1099 MISC

[Leslie M]

I have received a 1099 MISC for oil and gas royalties in 2024.  The supplemental information shows a negative deduction amount for the year.  My guess is that after auditing expenses over the past 3 years the deductions previously reported were over stated.  I received the negative deduction amount in the form of a check this year, but it is not reported as royalty income in box 2 (I assume it is because it was previously reported in box 2 in prior years for the gross royalties), but rather as a negative deduction.

Turbo tax will not allow me to enter a deductions amount of less than $0.00.  How do I handle this negative deduction?

[PatriciaV]

If the amount reported in Box 2 matches the actual income you received during the year, you would not need to report the negative adjustment.

However, if you received more than the Box 2 amount (royalties plus the refund of prior deductions), you would need to adjust (increase) the amount reported in Box 2 when you enter Form 1099-MISC.

[Leslie M]

Thanks so much, Patricia!

[acch]

I have the same issue.  Thanks for asking the question.