I’ve recently gone thru this for my mother’s mineral rights. She is a resident of Pennsylvania. You will owe STATE income taxes to West Virginia. But you will not be sent a bill by the state. You should receive a 1099 form from Antero, or whatever production company is sending you royalty checks (if the amount is over $600 per year, I think). You need to tell TurboTax that you had income in another state. That’s where you tell it you had income in WV. Then TurboTax will have you download the second state income tax forms and it will then have you fill them out. It will be a WV non-resident tax form. In fact, you generally go thru the process of entering the WV tax form data first so that you can then deduct that tax payment on your DC income taxes. In this way, you aren’t paying state income taxes on the income twice. The COUNTY will send you a tax bill, starting for the year that is 2 years after your first royalty check. It is your responsibility to keep your current address up-to-date with the production company so they can send the proper address to the counties. Actually, as mentioned above, it is sent to the state and then the state notifies the counties. It would probably be smart to locate each counties’ tax department website and learn how to query the records to stay on top of any taxes that have been billed to make sure they all get paid. Especially, if you move addresses now and then. Due to that 2-year delay, things could get screwed up with address changing.
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