Question

Self Employment Tax

Forum|Forum|5 years ago
April 15, 2021
1 reply
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Oil royalties are not subject to self employment tax if you file as an individual. If the owner of the oil royalty is a single member llc is that still true? Is the llc oil royalty reported on schedule E or does it now go to schedule C?

Not A Product Question

D

DianeW777

Yes, it's still true if you are not the operator of the extraction of those deposits that create royalties. It is filed on Schedule E as royalties.

With your return open, search (upper right) for 1099-MISC (use the dash), press enter and select the Jump to link in the search results.

When you enter your 1099-MISC, enter the income in Box 2 - Royalties. On the following screen, choose the source of your royalty income:

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