The best thing to do would be to contact the studio and have then delete the 1099-Misc form. If they won't do that, you can report it in TurboTax and then do the following to cancel out the income:
1. From the Federal menu in TurboTax find Wages and Income
2. Find Less Common Income
3. Choose Miscellaneous Income, 1099-A, 1099-C
4. Choose Other Reportable Income
5. Enter a description of the reduction and the adjustment as a negative number
Also, you need to make sure that you are not legally entitled to the residual income. If you told the studio to simply pay the residuals to a charity without transferring the ownership of them to the charity, then you may still legally be entitled to the money and such you would have to report the residuals as income. In that case, you could deduct the contributions as charitable contributions if the charity qualifies. However, you would have to itemize your deductions for this to benefit you, so you may not get a benefit in that circumstance.
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