1099-MISC: Schedule C or E?

[elora_c]

My husband used to work as a freelance editor of technical books. He received royalties from the sales of those books. I always filed a Schedule C-EZ for this income. He now is a full time employee in a different industry (online media), but still receives royalties from those sales which is reported on a 1099-MISC as box 2 (royalties). Do I still file this on the schedule C (and pay self-employment taxes) or does it now go on Schedule E?  Just to note again, he was not the author of these books.

[RayW7]

If you received a 1099-MISC for royalty income, enter it under the Rental and Royalty section, and not in the Other Common income section. This will properly link the 1099-MISC with the schedule E. Enter in the Royalty Income section on the summary page. Delete the form if you entered it elsewhere.

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Where do in enter royalty income in TurboTax? Schedule E or ...

[elora_c]

So even though this originally was considered self-employed income, since he is no longer doing that contract work it is now considered 'normal' royalties? As opposed to self-employment royalties and subject to self-employment taxes?  Thanks.

[AmeliesUncle]

It is still self-employment income.  As you said, the original source was from self employment, and therefore so are the royalties.

[ColeenD3 · Accepted solution]

Please see this answer from IreneS.

"Any royalties from intellectual property you created as part of your profession should be reported on a Schedule C.   If this royalty is not from an activity you engage in professionally, you should enter it on a Schedule E."

"Royalty income from your business, including artist royalties, go to a Schedule C, although other types of royalties, for property, do go to a Schedule E."