This would actually be reported as self-employed income because it was a payment for performing a service in executing a lease. In this respect, you are a lease contractor but you probably haven't thought of yourself as one. This would not be considered royalty income because the money wasn't earned from oil or mineral production but from a service you performed.
To report, go to:
- Go to federal>income and expenses>
- Self-Employment>Self-employment income and expenses
- Complete the profile that asks about your business. Here you don't need to be too detailed.
- Then there will be a screen where you will enter your self-employment income.
@JS2982
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