Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 29, 2023 2:16:26 AM

Do I need any Schedule C for reporting my oil/gas royalty income? I didn't used to have to use that form, only 1099-MI|SC. This year it asks "Source of 1099-MISC Income"

0 1 410
1 Replies
Expert Alumni
Mar 29, 2023 5:10:38 AM

It depends. 

 

Use Schedule C if your royalty income is from natural resources that you extract from your property.

 

Use Schedule E if your royalty income is investment income from property you own, which includes natural resources extracted from your property by a third party who leases your property.

 

To quickly get to that section of TurboTax:

  1. With your return open, search for 1099-MISC and select the Jump to link in the search results.
  2. When you enter your 1099-MISC, enter the income in Box 2 - Royalties. On the following screen, choose the source of your royalty income, business or investment.
  3. Once you've selected the proper classification, continue with the onscreen interview until complete.