For a Trust, when entering information into TurboTax Business under the Income tab, there is a category for Rentals and Royalties. Your 1099-MISC has identified the income as a royalty, and thus, it seems appropriate to enter the income in the Rentals and Royalties section. However, your description of what this 1099-MISC represents--a stock dividend--is at odds with the information contained in box 2 on the 1099-MISC. It seems you have a choice here. Either enter the income as a royalty in the Rentals and Royalties section, or request that the payor amend the 1099-MISC to reflect that this income is a dividend. In the Income section, there is the category for Interest and Dividends.
At this point, you probably won't be able to get an amended 1099-MISC. Therefore, you will probably need to enter this income in the Rentals and Royalties section of TurboTax Business for Trusts. Your situation gets further complicated because when you enter this income as a royalty, you may have to also complete a Schedule E. All of this can be done in TurboTax; however, if you characterize the income on the 1099-MISC as something inconsistent with what is on the 1099-MISC, such characterization may further complicate things.
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