Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income.
In most cases, you report royalties in Part I of Schedule E (Form 1040).
However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C or Schedule C-EZ (Form 1040).
Do NOTE that many authors are not in the business of making a profit or earning their living off of writing and the IRS may consider your income hobby income. You must have intent to profit, so if you take losses for more than 2/5 years the IRS may adjust your return and require you to report as a hobby. If you consider it a hobby then report it as below:
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