Self Employment Tax

[dllanning1]

Oil royalties are not subject to self employment tax if you file as an individual.  If the owner of the oil royalty is a single member llc is that still true?  Is the llc oil royalty reported on schedule E or does it now go to schedule C? 

[DianeW777]

Yes, it's still true if you are not the operator of the extraction of those deposits that create royalties.  It is filed on Schedule E as royalties.

• With your return open, search (upper right) for 1099-MISC (use the dash), press enter and select the Jump to link in the search results.

  When you enter your 1099-MISC, enter the income in Box 2 - Royalties. On the following screen, choose the source of your royalty income: