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It appears you have selected that you are receiving  Royalty income from your business, including artist royalties or operating a natural resources business (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.

If it should be business income you will be taxed for social security and medicare taxes as well as  your personal income tax.  

If it should be a royalty and not business income you must indicate that when you enter the 1099-MISC.    You need to select Investment income from property you own – 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.

• Search > type royalties > Click the Jump to... Link > Complete your royalty income section (Should be on Schedule E if you are not operating a business for this payment).

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