Phantom royalties?

roaringbranch — Wed, 15 Apr 2020 05:35:53 GMT

On the final federal check, TurboTax tells me that "Sch E worksheet link must be established. Royalty income and expense is reported on Sch E..." I don't have any royalty income or expense, so I enter 0. But the same question keeps popping up over and over. Why?

Re: Phantom royalties?

ThomasM125 — Thu, 16 Apr 2020 00:11:00 GMT

Royalty income would be reported on a separate schedule E. You may have one being pulled over from the previous year, or you may have royalty income reported on a K-1 form, that then needs a schedule E.

I suggest you look for the schedule E in your list of forms and schedules in your program and delete it. If it comes from a K-1 entry, after you delete it, it will just re-populate itself. In that case, you need to go back through the K-1 entries to find the royalty income (box 7 on partnership K-1) and make sure you answered the questions correctly on the K-1 entry.

You can delete a form in TurboTax as follows:

1. Find the Tax Tools option on your left menu bar and click on it

2. Click on Tools

3. Find Delete a Form and click on it

4. Look for the Sch E in the list of forms and click on the option to delete it

Just make sure you don't delete the wrong schedule E, if you have more than one of them!

topic Phantom royalties? in Business & farm

Phantom royalties?

Re: Phantom royalties?