TurboTax quite annoyingly thinks that by "royalty", you mean you have an oil or gas well and tries to steer all your responses in that direction. Stick with it this flowchart, though, and you will eventually get into a situation where you are correctly reporting your intellectual property as royalties, which wind up in Schedule E, not Schedule C. Turbotax does not make it easy for writers or music composers to report passive income from previous works if you are no longer self-employed in that line of work.
