topic 1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier in Deductions & credits

1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier

Tulane — Sun, 16 Feb 2025 18:55:59 GMT

Hi,

Can someone please assist me? I would like to know where to enter amount for "Production Taxes" and "Other Revenue Deductions" in TT Premier? If "Production Taxes" = $50 and "Other Revenue Deductions" = $20, can I obtain the total of both and enter the amount in TT under "Other Taxes" = $70? Otherwise, I can guess "Production Taxes" can correspond to TT "Other Taxes" but I'm not sure about "Other Revenue Deductions".

1099-MISC:

TT Premier:

Thank you,

Tulane

Re: 1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier

BrittanyS — Sun, 16 Feb 2025 19:28:51 GMT

Royalty Properties expenses such as production tax is reported on the Schedule E under Rental Properties and Royalties. To enter this into TurboTax, follow the steps below:

Sign in to TurboTax
Click Wages and Income
Scroll down to the Rentals, Royalties, and Farm and click start next to Rental Properties and Royalties (Sch E)
On the "Did you have any Income from Rentals or Royalty Property You Own" screen click Yes.
Click the Edit box next to the royalty. Or you can click on the link Add Another Rental or Royalty.
On the screen, Is This a Rental Property or Royalty? be sure to mark the radio button next to Royalty property or payment.
Continue through the screens, entering the requested information, until you reach Review Your [XX] Royalty Summary.
On this screen, click the Start/Update box next to Expenses. Continue to the Any Miscellaneous Expenses screen and enter the amount.

Re: 1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier

Tulane — Sun, 16 Feb 2025 20:44:11 GMT

Thank you, @BrittanyS. I appreciate your help.

-Tulane91

Re: 1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier

Tulane — Mon, 17 Feb 2025 00:06:33 GMT

Apparently I'm not completely done with this. So going back to my example above, "Production Taxes" = $50 and "Other Revenue Deductions" = $20. If 1099-MISC Royalties = $500 so "Net Income" = $430. In Oklahoma State Filing for Schedules A-H (Schedule 511-NR-B), which of the following option is correct:

Option A

Line 12 "Rental real estate, royalties, partnerships, etc" = $500
Line 8 "Additional depletion" =
1. $500 x 0.85 (15% depletion) = $425
2. $500 x 0.78 (additional 7% depletion from Oklahoma for a total of 22%) = $390
3. $425 - $390 = $35

Option B

Line 12 "Rental real estate, royalties, partnerships, etc" = $430
Line 8 "Additional depletion" =
1. $430 x 0.85 (15% depletion) = $365.5 ($366)
2. $430 x 0.78 (additional 7% depletion from Oklahoma for a total of 22%) = $335.40 ($335)
3. $366 - $335 = $31

Thank you,

Tulane

Re: 1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier

DaveF1006 — Wed, 19 Feb 2025 01:55:26 GMT

It depends. If you entered your 1099 MISC royalty income and expenses correctly in Schedule E your return, then the taxable income in your federal return will be $355, based on the information you gave me. Then all you need to do is enter the adjustment for the difference between 15% and 22% in your Oklahoma return, which is $35, and your Oklahoma taxable income will be $320 after the adjustment.

So based on your assumptions you listed above, option A is correct. The Oklahoma adjustment screen looks like this when you enter the adjustment.

@Tulane

Re: 1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier

Tulane — Thu, 20 Feb 2025 00:51:04 GMT

Thank you, @DaveF1006. I appreciate your help.

Tulane