Your advance payments are considered self-employment payments. For federal tax purposes, you are considered to have a company under your
name and your address; with income subject to self-employment tax.
- Federal Taxes
- Self-employment
- Income and Expenses
Note: When the producer or creator of a musical composition, literary work or
work of art receives royalty income (and your advance payments are considered as such) in connection with a copyright on that
product, they royalty arises from the performance of services, and it is
reported on Schedule C as self-employment income.
