Royalty income reported in box 2 of a 1099-MISC is reported on SCH E. You'll deal with that in the Rental & Royalty Income (SCH E) section of the program, when you get to that point in the program.
Note there are three areas in the program where a 1099-MISC can be entered. Which of the three you use depends on what box the income is reported in. In your case, if the income is reported in box 2 then it gets reported in the Rental & Royalty Income (SCH E) section of the program.
