topic Gas/Oil Royalties ~ can I deduct the cost for TT from my royalties in a second state? in Deductions & credits

Gas/Oil Royalties ~ can I deduct the cost for TT from my royalties in a second state?

CaddyGrn — Mon, 24 Feb 2025 19:45:32 GMT

I receive a small amount of gas/oil royalties from a second state. It is not a business; it is just royalties, as I only own a small percentage. However, I must file and pay taxes in the second state and purchase a second state tax program from TT. Is this second TT state software deductible anywhere? Thank you for your assistance!

Re: Gas/Oil Royalties ~ can I deduct the cost for TT from my royalties in a second state?

Vanessa A — Mon, 24 Feb 2025 21:08:00 GMT

It depends on which state and if the state allows for itemizing of expenses and what expenses they allow you to itemize.

Which state are you asking about?

Re: Gas/Oil Royalties ~ can I deduct the cost for TT from my royalties in a second state?

CaddyGrn — Tue, 25 Feb 2025 19:15:04 GMT

I am a resident of California and file taxes there, but I also receive royalties from Oklahoma and file OK tax. I use TT, so I get California tax software with my Federal tax, but I have to purchase the Oklahoma tax software to complete my filing. My royalties are just that, no business. But after I purchase the OK tax software to file and then pay to efile, it is nearly a wash on my small return, so if I can somehow deduct the OK tax program maybe it will save me a tiny amount... thanks for your help

Re: Gas/Oil Royalties ~ can I deduct the cost for TT from my royalties in a second state?

DianeW777 — Mon, 03 Mar 2025 21:33:27 GMT

It depends. If you are saying you purchase TurboTax software for Oklahoma (OK) so that you have the ability to file your royalties for the state of OK, then you could use that portion of the cost as a deduction on your royalty income. This seems reasonable and would reduce your overall royalties on all returns.

@CaddyGrn