ROYALTY TRUST

[optimusa5]

I own CROSS TIMBERS ROYALTY TRUST through E•Trade (I've already contacted E*Trade for guidence)

My 1099MISC has a royalty of $24.01 for 2022 ROYALTY DISTRIBUTION

TurboTax is asking questions I do not understand. Specifically asking for 1040 Schedule E worksheet.

It is a stock, yet I have to answer property and business questions I do not know. For example, nether of the following two options provides a solution.

• Investment income from property you own – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E
• Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C) – This includes income from natural resources that you extract from your property as well as royalty payments from intellectual property you created as an inventor, writer, artist, and so forth. This gets reported on Schedule C

I've looked at the Schedule E worksheet and it is a rabbit hole I do not understand. I usually have an easy tax filing year to year but this is very confusing.

Any help would be greatly appreciated.

[RobertB4444]

The first of those two options is exactly what this is.  You invested in a trust that gets royalty income from other sources and passes it on to you.  

Go to the 'Wages and Income' section of your federal return and scroll down to '1099-MISC and Other Common Income'.

Click 'start' next to 1099-MISC'

Enter the payer information and enter the $24 in the 'box 2 royalties' box.

Check 'Investment Income from Property you Own'.

The description is 'Cross Timbers Royalty Trust'.  There is no address.

Now, unless you have deductions related to that trust you are done.

@optimusa5