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Level 1
posted May 31, 2019 11:20:08 PM

Do I include my book advance as income?

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?

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1 Best answer
Expert Alumni
May 31, 2019 11:20:10 PM

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. 

1 Replies
Expert Alumni
May 31, 2019 11:20:10 PM

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.