Solved: The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?
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The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?

 
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The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?

If you created the video yourself, your income will generally be reported on Schedule C.  However, this issue is fuzzy (as you have noticed) and determining which approach to take is something you must decide.  Here is some detail to help you with the decision:

The IRS has ruled that an person who writes only one book (or creates only one video) as a sideline and never revises it is not regularly engaged in an occupation or profession, and the royalties are not considered earnings from self-employment.  However, preparing new editions and creating new materials reflect the conduct of a trade or business.  

Even though an individual is not currently involved in his or her creative pursuit of income, any royalties received are business income if the individual was engaged in the business at the time the material generating the royalties was produced. Therefore, royalty income should be classified as business income for individuals who were in the business at the time the intellectual property was created.

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Level 2

The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?

What type of income was the 1099-MISC issued for?
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New Member

The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?

Box 2 - royalties. It is from a YouTube video that I own. I have a 3rd party that does the leg work for me so the income goes from YouTube to the 3rd party then the 3rd party pays me after taking their fees. The 1099 was issued from the 3rd party.
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Level 2

The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?

If you created the video yourself, your income will generally be reported on Schedule C.  However, this issue is fuzzy (as you have noticed) and determining which approach to take is something you must decide.  Here is some detail to help you with the decision:

The IRS has ruled that an person who writes only one book (or creates only one video) as a sideline and never revises it is not regularly engaged in an occupation or profession, and the royalties are not considered earnings from self-employment.  However, preparing new editions and creating new materials reflect the conduct of a trade or business.  

Even though an individual is not currently involved in his or her creative pursuit of income, any royalties received are business income if the individual was engaged in the business at the time the material generating the royalties was produced. Therefore, royalty income should be classified as business income for individuals who were in the business at the time the intellectual property was created.

View solution in original post

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New Member

The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?

Answering the questions differently on TurboTax dictates which schedule is selected. I have done it both ways and the results are similar as far as the money owed (Schedule C vs E). The back of the 1099-MISC states to use E for "copyrights" in the Box 2 section: (Report royalties from oil, gas or mineral properties, copyrights, and patents on Schedule E (Form 1040). However, report payments for a working interest as explained in the box 7 instructions. For royalties on timber, coal, and iron ore, see Pub. 544)

This is why I am having a hard time determining which. So you are %100 sure that Schedule C is the correct form for this income?
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Level 2

The TurboTax questions for my 1099-MISC don't quite apply. For a YouTube video, should I use schedule C or E?

@joeyalangore Please see my expanded answer above.
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