Where it is reported depends on whether the income is reported in Box 2 Royalties or
Box 7 Non-employee compensation?
Royalty
(box 2) reports royalty payments from intangible property such as patents,
copyrights, trade names, and trademarks. Report the gross royalties (before
reduction for fees, commissions, or expenses) paid by a publisher directly to
an author or literary agent, unless the agent is a corporation. The literary agent (whether or not a
corporation) that receives the royalty payment on behalf of the author must
report the gross amount of royalty payments to the author on Form 1099-MISC
whether or not the publisher reported the payment to the agent on its Form
1099-MISC.
Royalties
are entered on Schedule E Supplemental Income and Loss.
Search for Royalty and then click the "Jump
to" link in the search result.
- Answer Yes to the question Did you have
any rental or royalty income and expenses?
- Follow the
on-screen instructions as you proceed through the royalties section.
Self-employment
(whether reported on a 1099-Misc or not) are entered on Schedule C Profit or
Loss from Business.
