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?
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.
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.
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.