topic Negative deduction amount on 1099 MISC in Investors & landlords

Negative deduction amount on 1099 MISC

Leslie M — Mon, 24 Feb 2025 16:58:24 GMT

I have received a 1099 MISC for oil and gas royalties in 2024. The supplemental information shows a negative deduction amount for the year. My guess is that after auditing expenses over the past 3 years the deductions previously reported were over stated. I received the negative deduction amount in the form of a check this year, but it is not reported as royalty income in box 2 (I assume it is because it was previously reported in box 2 in prior years for the gross royalties), but rather as a negative deduction.

Turbo tax will not allow me to enter a deductions amount of less than $0.00. How do I handle this negative deduction?

Re: Negative deduction amount on 1099 MISC

PatriciaV — Mon, 24 Feb 2025 22:08:48 GMT

If the amount reported in Box 2 matches the actual income you received during the year, you would not need to report the negative adjustment.

However, if you received more than the Box 2 amount (royalties plus the refund of prior deductions), you would need to adjust (increase) the amount reported in Box 2 when you enter Form 1099-MISC.

Re: Negative deduction amount on 1099 MISC

Leslie M — Tue, 25 Feb 2025 18:09:42 GMT

Thanks so much, Patricia!

Re: Negative deduction amount on 1099 MISC

acch — Sat, 01 Mar 2025 17:41:45 GMT

I have the same issue. Thanks for asking the question.