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Level 1
posted Jun 4, 2019 6:19:46 PM

How do I handle entering royalty income reported on a 1099-MISC when that 1099-MISC includes income from more than one property?

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1 Best answer
Employee Tax Expert
Jun 4, 2019 6:19:48 PM

Is this for oil & gas? Can you separate the data on the supporting royalty documents? 

If not, you can enter the data for the combined total. The total royalty income will flow into one total on line 23b, so it doesn't really matter if its separate.

Note: Be certain to deduct any production taxes, depletion (15%) and any other expenses you have. You will only want to pay taxes on the net amount you received, not the 1099-MISC gross. Any additional depletion that your state may allow (OK allows an additional 7% for example) will be an adjustment under your state taxes

1 Replies
Employee Tax Expert
Jun 4, 2019 6:19:48 PM

Is this for oil & gas? Can you separate the data on the supporting royalty documents? 

If not, you can enter the data for the combined total. The total royalty income will flow into one total on line 23b, so it doesn't really matter if its separate.

Note: Be certain to deduct any production taxes, depletion (15%) and any other expenses you have. You will only want to pay taxes on the net amount you received, not the 1099-MISC gross. Any additional depletion that your state may allow (OK allows an additional 7% for example) will be an adjustment under your state taxes