MonikaK1
Expert Alumni

Get your taxes done using TurboTax

Since you are now receiving Forms 1099-MISC with Royalties in Box 2, you should report them on Schedule E unless the activity becomes a trade or business, such as with book writers as you noted. 

 

See LenaH's response to this thread for further explanation. When you enter the 1099-MISC, enter your income into Box 2.  On the next screen, choose Investment income from property as this income should be reported on Schedule E. 

 

See here for additional IRS information on the topic, under Royalties.

 

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