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Returning Member
posted Feb 5, 2024 5:23:36 PM

Where do I report Deductions from Revenue for oil/gas royalties? These are not shown on the 1099-MISC I receive but are on a separate sheet

The deductions that are shown on a separate sheet are "Production Taxes" and "Other Revenue Deductions"

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1 Replies
Expert Alumni
Feb 6, 2024 6:40:14 AM

Royalties from oil & gas are reported on Schedule E, which allows you to claim deductions for taxes and other fees withheld from your revenue.

 

Your best option is start in the Rental and Royalty Property section of TurboTax, add/start a new Royalty property and enter Form 1099-MISC under Income. If you already entered the 1099-MISC, TurboTax may have started Schedule E for you. Just be sure you don't report the income twice.

 

The deductions reported with 1099-MISC are entered under Expenses for your Royalty Property. If you don't find an expense category that fits, you may use Miscellaneous Expenses with a custom description.