If my 1099-misc form has a line at the bottom showing "owner deductions" amounting to about 50 % of the "gross royalty" amount with no entry box number, what do I do?

Can I change the Box 2 Royalties to the net amount?

307

Expert Alumni

Mar 25, 2025 1:57:54 PM

It depends. If the deductions are related to the income you can choose to do the offset. Or you can enter the full income and then enter the expenses in the Schedule E.

TurboTax Online: Select Tax Home (left panel) > Wages & Income > Scroll to Rents, Royalties, etc > Edit next to the royalty income.
TurboTax Desktop: Search (upper right) > type royalties > Click the Jump to... link > Edit next to the royalty income

Whichever you decide be sure to keep 1099-MISC with your tax file.

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If my 1099-misc form has a line at the bottom showing "owner deductions" amounting to about 50 % of the "gross royalty" amount with no entry box number, what do I do?