No - the insurance payment would not be considered a royalty. It sounds as if a royalty entry form was generated inadvertently. To remove the form, please follow these steps:
- Click on Federal > Wages & Income
- Scroll down to the Rentals, Royalties, and Farm section and click on the Start/Revisit box next to Rental Properties and Royalties (Sch E).
- On the Income from Rentals or Royalty Property You Own screen click Yes.
- After a few screens, you should see the Rental and Royalty Summary screen. Click Delete next to the royalty.
- Click Done.
