I receive 1099 MISC for royalties I receive from oil producers. I enter that info into TurboTax 1099 MISC bucket. Then further down the income groups there is a "ROYALTIES" group. Am I supposed to re-enter the same info from my 1099 MISC?
Thanks,
Mike
No, it would be the name of whomever paid you like Continental for example. Don't forget to go to the Royalty section, so you can deduct things like production taxes and property taxes if you own the land. It's also where the 15% depletion allowance is calculated (automatic).
Your 1099-MISC will be reported as a gross amount, but you likely received less so look over your statements and deduct the difference as expenses. And lastly, OK allows for an additional 7% depletion allowance (22% in total), so visit that adjustment to income section in the OK state return to take advantage of the allowance.
Enter it in one place. I prefer the royalty section as that ties it with the form. If you entered it in the 1099-MISC section, you may be prompted later to 'identify' the property to which it belongs.
For "identify" I would enter "Garfield County" which is the county in Oklahoma where the oil well is. Is that sufficient?
No, it would be the name of whomever paid you like Continental for example. Don't forget to go to the Royalty section, so you can deduct things like production taxes and property taxes if you own the land. It's also where the 15% depletion allowance is calculated (automatic).
Your 1099-MISC will be reported as a gross amount, but you likely received less so look over your statements and deduct the difference as expenses. And lastly, OK allows for an additional 7% depletion allowance (22% in total), so visit that adjustment to income section in the OK state return to take advantage of the allowance.