If you are currently in the business of being a writer, then
your income and expenses would be reported on Schedule C and subject to
self-employment tax. The income
would include any royalties you received for past published works.
Only if you are not in the business of being a writer and
are simply receiving royalty income for past published works, then your
royalty income is reported on Schedule E
and is not subject to self-employment tax.
Based on your need to
include expenses for your book, you will need to use Schedule C (or Schedule
C-EZ) to report the income and expenses.
In order to complete either
type of Schedule C, you will need TurboTax self-employed online or the
CD/downloaded version of TurboTax.
