Just got my 2011 1099 from my broker.
The dividends paid for NRGY show as PARTNERSHIP DISTRIBUTIONS with a notation that the information is not reported to the IRS however it will be reported separately on a K-1 statement from the partnership.
Bottom line...how and where is this reported on my Federal return?
Your 1099 from the broker stated it correctly: don't report the distribution from NRGY as you would the divs. You will get a k-1 sometime in March from NRGY. Note there's a website where you can register to get your K-1's on the Internet and even a program that downloads the k-1 right into your Turbo tax. Manually entering the info from the k-1 is not difficult and the k-1 tells you which items go into which schedules if you don't use a program like turbo tax. I might get the more advanced Turbo Tax program for investments as the questions it asks are more in depth and handle partnerships better. In the past, I have found that there are always a few questions in turbo tax that are a little tricky, usually dealing with intangible drilling costs and the like which NRGY may not have. One other thing, the k-1 may report interest and capital gain that is then reported y you on your Schedule B. Royalties, if there are any, are reported on schedule E.
Neither. It is schedule E. But there may be amounts that flow to other schedules/forms too.
It's complicated but Turbotax handles it correctly assuming you enter things in the right places. The entry is straightforward once you've done it a few times, but will require some research if you're doing it for the first time.
enter the information on the K-1 into Turbotax.
Assuming you enter it correctly, TT handles it correctly. Strongly suggest you don't try to fill in the forms yourself without tax software.