It depends. You would need to report the sale of this book as self-employed business income and expense. In addition, since this is a freelance contractor and if you paid more than $600, you must issue a 1099-NEC to that consultant. To create these, you will need to upgrade to Turbo Tax Self-Employed and then follow these instructions.
- After signing in to TurboTax, open or continue your return.
- Select Tax Home from the left-side menu (you might already be there)
- Scroll down and select Your account.
- Select Create W-2s and 1099s.
- Follow the instructions.
To report your income and expenses in Turbo Tax.
- Sign in to TurboTax.
- Click on the orange Take me to my return button.
- Go to Income and Expenses
- Then go to self-employment income>self employment and expenses>start
- Answer the questions on the screen regarding your business profile. In this case, you are a self-published author when it asks for the description of your business.
- After your business profile is set.
- At some point during the interview, it will ask you if you paid more than $600 to a contractor. Here you will say yes if this is the case.
- To enter your income, scroll down to Business Income. Click Start/Update. Click Start/Update next to General Income.
- To enter your business expenses, scroll down to Business Expenses, Other Common Business Expenses. Click Start/Edit.
7. Continue with the onscreen interview.
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