Do I include my book advance as income?

[kerririchardson2]

I received the first of three payments on a book advance for a book I've written. I didn't receive any tax form for the advance. Should I include it in my general business income or as "other" income, or does it matter?

[MargaretL · Accepted solution]

Your advance payments are considered self-employment payments. For federal tax purposes, you are considered to have a company under your name and your address; with income subject to self-employment tax. 

1. Federal Taxes
2. Self-employment
3. Income and Expenses 

Note: When the producer or creator of a musical composition, literary work or work of art receives royalty income (and your advance payments are considered as such) in connection with a copyright on that product, they royalty arises from the performance of services, and it is reported on Schedule C as self-employment income.