I inherited mineral rights a few years back when my father passed away. This past year, 2015, I received a bonus payment for a company to start drilling. I also received a royalty check for another site that we had not known about.
We live in NC, but are filing Oklahoma tax for the bonus payment. When we put in the amount for both payments (the royalty already had money withheld) H&R Block online is totaling our taxable income for about $1000 more than what we received. Does this make sense?
We are following the directions to claim one as rent and the other as royalties.