Yes. The IRS defines Box 3 Other Income on Form 1099-MISC Box 3 as income that is not reportable in one of the other boxes on the form. Technically, Royalties should be reported in Box 2. The State of Oklahoma didn't produce the royalty income for you, which could explain why they used Box 3 and let you decide how to report it.
As long as you report this income somewhere on your tax return and have records to explain why you reported it as you did, the IRS is satisfied.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
