1099-misc

[Thomas139]

I received a very small passive income payment, <$50, from a book I wrote years ago and it was reported on a 1099-misc as a Royalty (Box2).  I have not done any writing in about 5 years.  I am having a very hard time getting this passive income entered into Turbotax.  I've made several attempts by following the software instructions but still keep getting errors or flags.  It is the one thing keeping me from finishing the Federal return.

Does anyone have a similar experience and can provide some recommendations on how to get this completed?

I'm using Turbotax Premier, Desktop version, Windows, 2025 Tax Year

Thanks for your advice.

[KrisD15]

You should be entering this as a Royalty Payment (not as a 1099-MISC "Other Income").

• Wages & Income
• Rental Properties and Royalties
• START or UPDATE 
• Continue

On the "Is This a Rental Property or Royalty?" screen, select "Royalty property of payment"

Use your address if applicable

Select "Other Intangible" for Type

Continue to finish entering the Royalty Profile

DO NOT LEAVE THAT SECTION

Select "Royalty Income"    START

Select "Royalty income reported to you on Form(s) 1099-MISC"    START 

Enter the 1099-MISC and finish the interview

This should put the royalty (passive income) on Schedule E 

Flows to Schedule 1

Flows to your 1040 line 8

The 1099-MISC is not entered anywhere else in the program. 

[Thomas139]

Data entered as suggested and it goes to a schedule E. However page 2 section 4 shows the $ value in red and next to the forms list it has a red !.  The information does not flow to 1040 line 8.

[Thomas139]

When I put 100% in the box next to the Total Royalties received the $'s flowed to schedule 1 and 1040 line 8.

However, next to the list of forms schedule E still has a red !  So it seems like the schedule E might be missing some piece of information.

Thanks for your information and have a great weekend.

[KrisD15]

If you are using TurboTax Desktop and there is a red exclamation point by Schedule E, you should be able to see a red input field on Schedule E somewhere (scroll up and down to look over the schedule) which is telling you what the program is looking for or what you need to change. 

Once the red fields on the schedule E are filled, the red ! will disappear. 

[Thomas139]

Thank you!

What is still puzzling me is that this is royalty from essentially intellectual property (reported on a 1099-misc) and that entering the information using this approach seemed like it was more geared to real estate royalties.

When I declared that this was a Royalty (not using Other) and then marked it as not a QBI then the data flowed to Schedule E and line 8 of the 1040. 

I initially tried declaring it Other it and it wanted rental information which is not what this is.

So for now it looks like the royalty information got where it needs to be although the the path was not intuitive given that it was reported on the 1099-Misc.

Have a good weekend!