How do I enter a 1099-MISC for royalty income?
To enter your 1099-MISC for royalty income in TurboTax:
Navigate to the 1099-MISC section:
TurboTax Online/Mobile: Go to the 1099-MISC screen under Wages & Income
TurboTax Desktop:
Go to Federal Taxes.
Go to Wages & Income.
If asked, How do you want to enter your income?, select I'll choose what I work on.
Under 1099-MISC and Other Common Income, select Start or Update next to Income from Form 1099-MISC.
Search for 1099-MISC and select the Jump to link.
When you enter your 1099-MISC, enter the income in Box 2 - Royalties. On the following screen, choose the source of your royalty income:
Royalty investment income from a natural resource, intellectual property, or other investment portfolio (no operating interest) – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
Royalty income from being self-employed as a writer, investor, artist etc or operating any business derived from natural resources (Schedule C) – This includes income from natural resources that you extract from your property as well as royalty payments from intellectual property you created as an inventor, writer, artist, and so forth. This gets reported on Schedule C.
Once you've selected the proper classification, follow the on-screen instructions.
