Royalty income, which is what you have, is reported on Schedule E. Schedule E, Supplemental Income and Loss is used to report profits and losses from K-1s as well as income and expenses from rental property and certain types of royalty income.
When you enter income from a K-1, rental property, or non-business royalty, TurboTax will automatically generate Schedule E.
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Business royalties that are received from operating a natural resource business go on Schedule C.
