Investors & landlords

You enter the royalty income reported on the form 1099-MISC as royalty income on the Schedule E.

When you started the rental section, one of the first few screens asks if this a Rental or Royalty property.  You should have selected Royalty.  Then in the Income section you were asked if you received a Form 1099-MISC for income.  You should have answered Yes and then completed the 1099-MISC by entering the Payer's name and employer number and the $130 in box 2.  Continue with this section until it completes.