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?

[lexilink]

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

[DianeW777]

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.