Oil, gas, and minerals. Royalty income from oil, gas, and mineral properties is the amount you receive when natural resources are extracted from your property.You generally report royalties in Part I of Schedule E (Form 1040).[Form 1099-MISC, Box 2 Royalties]
Specifics for reporting
Box 2 of Form 1099-MISC is reserved for tax reporting related to royalty payments.Part I of Schedule E (Form 1040){select royalty for this] Link to "investment"at the last screen of the 1099-misc section..
IRS required schedule for filing.