The Business Income and Expenses section of Turbo Tax would be used if you are a writer, and are in the business of writing books. You would enter your freelance writing income, and write off any related business expenses.
If you are not in the business of writing books (which is what it sounds like), your royalty payments will be entered in the Rental Properties and Royalties section. There will be a few initial questions related to rental properties, but then you will land on a page asking, "Is this a rental property or royalty?" (See attached screenshot.)
From there, you will be able to enter your royalty income, and any expenses related to the royalty. Many of the questions will be worded in a way that will lead you to believe you are entering a rental property, but continue on and answer the questions as they relate to your royalty. In the end, your royalty income will be properly reported on a Schedule E.
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