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herve01
New Member

I entered Sched E oil/gas royalty data, when I go to file, an error loop occurs for 1099-Misc Sched C that will not accept zero or complete dollar amount. I CAN'T FILE?

 
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3 Replies
PatriciaV
Expert Alumni

I entered Sched E oil/gas royalty data, when I go to file, an error loop occurs for 1099-Misc Sched C that will not accept zero or complete dollar amount. I CAN'T FILE?

Please provide the exact error message you are seeing. Does a form pop up asking for input? What have you tried?

 

Also, which version of TurboTax you are using: TurboTax Online or TurboTax for Desktop? Windows or Mac? If Online, which browser?

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herve01
New Member

I entered Sched E oil/gas royalty data, when I go to file, an error loop occurs for 1099-Misc Sched C that will not accept zero or complete dollar amount. I CAN'T FILE?

@PatriciaV 
For the 2nd year I am using Turbotax Online 'Premium' in Windows 10 via 'Fidelity' link.
I entered Sched E oil/gas royalty data ($224 from 3 sources) and when I go to file an error loop occurs. I want to e-file.  Error: "Here's what our check found: 1 detail for you to review" which brings up pop-ups for a Schedule C entry box (won't allow me to tab to Schedule E, won't allow me to enter Zero or full dollar amount.) "If you're not able to fix these issues, you will return to this screen and you can print the return by selecting File by Mail." I cannot complete the form and cannot file my taxes, or even print them. Please correct this 'death loop.'

You site reports oil/gas royalties should be Schedule E, as I've done.
https://accountants.intuit.com/taxprocenter/tax-law-and-news/basic-tax-reporting-of-oil-and-gas-rela...
Royalty payments  
This should be reported on Schedule E, page 1, as Royalties Received. The production tax and other revenue deductions on the Form 1099-MISC along with other expenses you incur, including property tax, legal, and tax preparation should be shown on the Schedule E under Expenses.

MonikaK1
Expert Alumni

I entered Sched E oil/gas royalty data, when I go to file, an error loop occurs for 1099-Misc Sched C that will not accept zero or complete dollar amount. I CAN'T FILE?

Depending on how you entered the Form 1099-MISC, it may be that TurboTax thinks that you should have a Schedule C. If that's not the case, and you have correctly entered the income on Schedule E, you could try deleting the form(s) for Schedule C that you are being prompted to complete.

 

To delete a form, in TurboTax Online:

 

  1. Open or continue your return in TurboTax.
  2. In the left menu, select "Tax Tools" and then "Tools".
  3. In the pop-up window Tool Center, select "Delete a form".
  4. Select "Delete" next to "(name of form, e.g. Schedule C) " and follow the instructions.

 

Enter the 1099-MISC in the place that best represents the type of income received. To enter a 1099-MISC for royalties. Box 2, in TurboTax Desktop, go to Wages and Income, and select Rental Properties and Royalties. Answer the interview questions. This section will provide entry screens for Royalties reported on Form 1099-MISC.

 

Taxpayers should normally report royalty payments as income on Part I of Schedule E (Form 1040), Supplemental Income and Loss. Income reported on Schedule E is usually not subject to self-employment tax.

 

Royalties from copyrights, patents, and oil, gas and mineral properties are taxable as ordinary income. You generally report royalties in Part I of Schedule E (Form 1040 or Form 1040-SR), Supplemental Income and Loss.  However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C (see this IRS webpage). You would be able to deduct any related expenses and you may need to pay self-employment tax on net profits.

 

If the payment is for something that doesn't fit either the description of a rental payment (lease bonus payments are also considered rental payments) or a royalty payment, you can make a separate 1099-MISC entry under Wages and Income, Income from Form 1099-MISC for just the Box 3 item. Indicate that it is a one-time payment and not earned with profit intent (so that it doesn't get misclassified as self-employment income).

 

@herve01 

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