Problem with Royalty Income prevents e-filing

[Tony007]

I am prevented from e-filing because the program asks for royalty  income when my K-1 clearly says zero.  This should be a simple fix but they can't seem to get it fixed  Any way around this problem?

[mesquitebean]

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@ Tony007  wrote:

I am prevented from e-filing because the program asks for royalty  income when my K-1 clearly says zero.  This should be a simple fix but they can't seem to get it fixed  Any way around this problem?

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By "royalty income" are you referring to mineral royalty; i.e., investment royalty?  That's what I'll assume in my comments below.

"they can't seem to get it fixed."

Does that mean you have already been talking to TurboTax Support about this issue?

So you have no royalty income at all on any form?

And the program is alerting to something on your K-1 as opposed to a 1099-MISC?   How does the program even know to ask you about royalty income in the Sched K-1 section?   Did you do anything re: royalty in another topic; i.e., in the dedicated Royalty Income section?  Do you have any other royalty outside the K-1 reported in the 1099-MISC royalty section?

Something may be generating a Schedule E, Part 1 in regard to royalty.  Are you using desktop software?   If so, go into Forms Mode, and look at the entries for the Schedule K and the Schedule E (Part 1) worksheet (if present) to see if you can spot the problem.    NOTE:  It would be normal to have a Sch E, Part II with a K-1, but see if anything happened to also generate a Part I (which is where investment royalty is reported.)   Or do you also have rental property on Sched E, Part I?  

I'm a fellow user--not a TurboTax employee, so I'm just trying to think of things I might try myself if I were in that predicament.   

If you can't figure out any problem by looking at the actual forms and worksheets mentioned above,  instead of entering "0" have you tried just leaving that box blank? 

Or is it trying to force "something" in that box? 

What happens if you enter a penny (like 0.01) and let the program round it to zero?

[mesquitebean]

@Tony007   Addendum:

I added a little more to my answer above.   If you were emailed the original answer, please return to the forum to see the additional info.

[mesquitebean]

@Tony007   

Edited:  6/24/2024 at 5:10 PM Pacific

Another option:

If push comes to shove, then you could go into Forms Mode and entirely delete both the Schedule E (see NOTE below first) and Schedule K-1, by selecting each one then choosing to delete..  Then re-enter the Schedule E and K-1 information freshly from scratch paying careful attention not to enter anything in any field that asks about royalty.   Deleting the forms and re-entering them may reset something.    You may wish to try just deleting the Schedule K-1 first and re-entering it (see NOTE below.)

NOTE:  I don't know anything about your Schedule E.   For instance, if you have rental property and have info that transferred in from last year such as depreciation, etc.,  you may not wish to delete the Schedule E.   So I'd first see if there is something on the Schedule E worksheet that can be edited in regard to royalty or if deleting the K-1 alone and re-entering the K-1 resolves it..

[Gfhfd]

I have the same problem. Every year turbo tax  seems to get locked up on some "final check". Now it is demanding royalty income, which I don't have any. Just because I entered 1099-Misc info. I entered 0 no go, I entered 1, same thing. I also tried deleting the forms as the other NON-turbo tax user suggested. Not an insult to the user but I think it is clear from this forum how much turbo tax cares about it's users. Problem still exists. This problem made me late on filing so I had to file an extension. 

They are saying they won't efile for me due to this error. 

[mesquitebean]

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@Gfhfd   wrote:

I have the same problem. Every year turbo tax  seems to get locked up on some "final check". Now it is demanding royalty income, which I don't have any. Just because I entered 1099-Misc info. I entered 0 no go, I entered 1, same thing. I also tried deleting the forms as the other NON-turbo tax user suggested. Not an insult to the user but I think it is clear from this forum how much turbo tax cares about it's users. Problem still exists. This problem made me late on filing so I had to file an extension. 

They are saying they won't efile for me due to this error. 

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I don't have any way to test this, so I'm just thinking out loud about how I would approach this if it were me. 

You said you have the "same problem."  In that case, this thread is about a K-1 that shows a 0 for a royalty figure so the final check asks for a royalty income to be entered (which would ultimately show on Schedule E.)  Since you said "same" is  that your issue?  You mentioned a 1099-MISC, however, so I'm not sure how that was generated.   If so, if you have a K-1 that has a 0 for royalty income, try leaving it blank in the K-1 interview then maybe it won't generate a 1099-MISC.   Or are you needing the 1099-MISC for anything else?   If the K-1 royalty entry of 0 is generating a 1099-MISC that's blank and asking for a royalty entry, I would delete that 1099-MISC, too, if it's not needed for anything else..   But I'd start with the K-1, and instead of putting a 0, I would leave any royalty entry blank first so that the 1099-MISC doesn't try to regenerate.   If a blank 1099-MISC is still showing up and is not needed for something else, I'd get rid of it.   If you don't mention royalty income anywhere, then it should not know to ask for royalty income.

I'll see if I can get a forum tax expert @ DawnC  to look over your issue to see if they can make any additional suggestion about what is going on.   Of if necessary, we can tell you how to phone TurboTax Support.