This indicates that you have a working interest in the oil wells.
Report the income as nonemployee compensation/self employment by following the steps here. The income can be reported as though it was on a Form 1099-MISC or you can include income that was not on a Form 1099-misc.
After you add the income you will be asked about the expenses ordinary and necessary to produce that income.
- Log into your TurboTax Premier desktop account.
- Select the Federal Taxes tab
- Select Wages & Income
- Scroll to Business Income and Expense
- Start or Update
- Continue to enter the income and expenses
The business name and business address will be yours, if you do not have a federal employer identification number (EIN) do not enter one.