1099-MISC Where do I claim "Production Taxes" and "Other Revenue Deductions" in TT Premier

[Tulane]

Hi,

Can someone please assist me? I would like to know where to enter amount for "Production Taxes" and "Other Revenue Deductions" in TT Premier? If "Production Taxes" = $50 and "Other Revenue Deductions" = $20, can I obtain the total of both and enter the amount in TT under "Other Taxes" = $70? Otherwise, I can guess "Production Taxes" can correspond to TT "Other Taxes" but I'm not sure about "Other Revenue Deductions".

1099-MISC:

TT Premier:

Thank you,

Tulane

[BrittanyS]

Royalty Properties expenses such as production tax is reported on the Schedule E under Rental Properties and Royalties.  To enter this into TurboTax, follow the steps below:

1. Sign in to TurboTax
2. Click Wages and Income
3. Scroll down to the Rentals, Royalties, and Farm and click start next to Rental Properties and Royalties (Sch E)
4. On the "Did you have any Income from Rentals or Royalty Property You Own" screen click Yes.
5. Click the Edit box next to the royalty.  Or you can click on the link Add Another Rental or Royalty.   
6. On the screen, Is This a Rental Property or Royalty?  be sure to mark the radio button next to Royalty property or payment. 
7. Continue through the screens, entering the requested information, until you reach Review Your [XX] Royalty Summary.  
8. On this screen, click the Start/Update box next to Expenses.  Continue to the Any Miscellaneous Expenses screen and enter the amount.

[Tulane]

Thank you, @BrittanyS. I appreciate your help.

-Tulane91

[Tulane]

Apparently I'm not completely done with this. So going back to my example above, "Production Taxes" = $50 and "Other Revenue Deductions" = $20. If 1099-MISC Royalties = $500 so "Net Income" = $430. In Oklahoma State Filing for Schedules A-H (Schedule 511-NR-B), which of the following option is correct:

Option A

1. Line 12 "Rental real estate, royalties, partnerships, etc" = $500
2. Line 8 "Additional depletion" = 
   1. $500 x 0.85 (15% depletion) = $425
   2. $500 x 0.78 (additional 7% depletion from Oklahoma for a total of 22%) = $390
   3. $425 - $390 = $35

Option B

1. Line 12 "Rental real estate, royalties, partnerships, etc" = $430
2. Line 8 "Additional depletion" = 
   1. $430 x 0.85 (15% depletion) = $365.5 ($366)
   2. $430 x 0.78 (additional 7% depletion from Oklahoma for a total of 22%) = $335.40 ($335)
   3. $366 - $335 = $31

Thank you,

Tulane

[DaveF1006]

It depends. If you entered your 1099 MISC royalty income and expenses correctly in Schedule E your return, then the taxable income in your federal return will be $355, based on the information you gave me. Then all you need to do is enter the adjustment for the difference between 15% and 22% in your Oklahoma return, which is $35, and your Oklahoma taxable income will be $320 after the adjustment.

So based on your assumptions you listed above, option A is correct.  The Oklahoma adjustment screen looks like this when you enter the adjustment.

@Tulane 

[Tulane]

Thank you, @DaveF1006. I appreciate your help.

Tulane