As Mike9241 notes below, these taxes should be entered on Schedule E, although it's fairly unusual for property taxes to be assessed on royalties.
In addition to property taxes, any production or extraction taxes and expenses can also be deducted. Depletion can be claimed, as well, and you may want to see if your state offers an additional depletion allowance.
To enter royalty income and expenses in TurboTax Online:
- If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit.
- Otherwise, in the left pane, select Federal, then Wages & Income (This is labelled Income & Expenses in TurboTax Self-Employed)
- Scroll down and select the Show more dropdown to the right of Rentals, Royalties, and Farm
- Select Start or Revisit to the right of Rental Properties and Royalties (Sch E)
- Answer Yes on the Did you have any income from rentals or royalties? page
Continue through the ensuing pages, providing all information as appropriate.
The entry procedure above should be used to populate your Schedule E, and includes
- Rental property income and expenses
- Natural resource royalties (oil, gas, timber, etc.)
- Intellectual property income
If appropriate, please see the TurboTax Help article How Do I File Back Tax Returns? for guidance.
For prior year tax products, please see Past Years' Products.
[Edited 4/2/2023 | `10:30 am PST]
@Mikeidaho
