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Business & farm
The way to report these remains a little fuzzy, maybe not just to me, but from what I understand, in mid 2021, Youtube changed the way payments are reported on 1099-MISC to now report on Box 2, Royalties.
Further more, as the OP pointed out, on the back of 1099-MISC for 2022 tax year, it guides the recipient to use Schedule E for these Royalties, not Schedule C.
There's a youtube with someone talking specifically about the decision on which form to use and these Mid 2021 changes here if interested titled Royalty Income for YouTubers - Form 109-MISC.
https://www.youtube.com/watch?v=5Dta-gEnxf4
Not sure if links are allowed, but the key identifier for the video URL: 5Dta-gEnxf4
I post Youtube videos as a hobby, I wouldn't say I'd ever need to put expenses or losses on these tax forms, so for me, the choice between C or E is a matter of which is more simple to fill out, if you are a content provider that's not really seeing it as a business or active trade you're engaging in.
In 2021 tax year, I attached a 1099-MISC for Youtube royalties with Schedule C based on some guidance I saw online at that time from some youtuber.
Schedule C also calls for you to categorize yourself with a code from the Principal Business or Professional Activity Codes list, and for 2022 tax year there is a category 516000 for Broadcasting & content providers. I used a different code 519100 in 2021 tax year.
Schedule E does not ask for that code and seems simpler to fill out. Again, I might have used Schedule C by mistake in 2021, but for 2022 tax year I am using Schedule E
In 2022 for my case at least with a simple youtuber hobby, the impact on my taxes is the same whether I enter this 1099-MISC under Schedule C or Schedule E.
Hope that above helps, not confuses more.
-MW