1099-MISC: Schedule C or E?

Forum|Forum|5 years ago
March 5, 2021
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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.

Best answer by ColeenD3

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."

RayW7

Level 12

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_cAuthor

Level 2

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.