Knowledge Base

11418: 1040 - Depletion

1040 Individual

Where do I enter depletion on a 1040 return?

Oil and gas depletion is calculated using the DEPL screen on the Adjustments tab.

Important: You must complete the rest of Form 1040 before making any entries on the DEPL screen. 

  1. View the completed Form 1040 and locate the taxable income line. Enter this amount on the DEPL screen, line 17.
  2. Indicate the form to which this worksheet’s calculations should carry (in the For field), and which instance of that form (in the MFC, Multi-form Code, field).
  3. Applicable Percentage field. Select 15% or 22% from the drop list. The DEPL screen calculates only oil and gas depletion and requires either 15% or 22%.
  4. If you enter data in both the Cost Depletion and Percentage Depletion sections, the program calculates the best deduction for the taxpayer.
  5. Enter any other necessary information on the DEPL screen.
  6. View the return and look for the Wks DEPL

The Depletion field on screens CE, K1P, and K1S screens are override fields. See IRS Publication 535 for more information on calculating depletion.

Related Links

Also In This Category

On a scale of 1-5, please rate the helpfulness of this article

Not Helpful
Very Helpful
Optionally provide private feedback to help us improve this article...

Thank you for your feedback!

Article has been viewed 24K times.
Last Modified: 5 Months Ago
Article not rated yet.