JeffreyR77
Expert Alumni

Get your taxes done using TurboTax

Your royalty income reported on Form 1099-MISC should be reported on your tax return on Schedule E Rentals and Royalty Income, not Schedule C.  In TurboTax, you can navigate to Wages and Income, 1099-MISC:

 

You then need to identify the source of the royalty income as Investment Income from property you own. 

 

The property in this case is the mineral rights.

 

This will take the tax reporting out of the realm of Schedule C and place it on Schedule E.

 

Name the royalty as it is reported to you.

 

You will be able to add your additional royalty sources so you can track them individually.