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Under your question it shows you are using TurboTax Business.   Is that correct?   Or is that incorrect and you are working on a personal return in the Home and Business product?

 

You didn't say what type of royalty, so I'll assume mineral property.

 

I can't help you with TurboTax Business, but in the Home and Business product after entering a 1099-MISC for royalty, a subsequent screen asks if it is from investment property or if it is related to one's business, and then it knows which topic/form to flow to.   If this is investment property, did you see any such screen where you could indicate that?