When you enter your 1099-MISC form, on the Source of 1099-MISC Income screen, you have to choose the source of your royalty income.
- If your royalty income is investment, income, you may use TurboTax Premier Online.
- If you choose that your royalty income is from a business, you'll need TurboTax Self-employed Online.
See the information below for a detailed explanation on how to choose whether your royalty income is an investment or a business.
Investment income from property you own – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C) – This includes income from natural resources that you extract from your property as well as royalty payments from intellectual property you created as an inventor, writer, artist, and so forth. This gets reported on Schedule C.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
