Video · 57 seconds · captions on

Royalty income and your 1099 (57 seconds)

Name: Royalty income and your 1099 (57 seconds)
Uploaded: 2026-09-30T00:00:00+00:00
Duration: 57 s
Description: Why the royalties on your 1099-MISC are more than the checks you cashed: Box 2 counts royalties gross, before the taxes that were withheld and paid. See where it goes on your return and how to reconcile in ten minutes. A 57-second cut of the full video.

Why the royalties on your 1099-MISC are more than the checks you cashed: Box 2 counts royalties gross, before the taxes that were withheld and paid. See where it goes on your return and how to reconcile in ten minutes. A 57-second cut of the full video.

Transcript

Your 1099 shows more royalties than you were paid. That is normal. Here is why. Box 2 of your 1099-MISC holds the royalties, gross. That is before the severance and other taxes that were withheld and paid. One oil line, gross, one thousand sixty-one dollars and eighty-five cents, less four point six percent severance tax. The check carries one thousand thirteen dollars. Box 2 is gross. Your checks are net. To reconcile, three steps. Add up your checks by the date paid. Add back the taxes on each stub. Anything left over is a question for the payor. Add up your checks and taxes with our free 1099 royalty reconciler. The sources are on screen.

The 1099 example is a real lease with a sample owner.