Claim Royalty income after you stop writing

[zaniix]

My wife published independently for several years through her own LLC. I usually file it as business income on a Schedule C.

She no longer writes, but is still paid royalties on past books through the LLC name.

Do I need to claim these royalties on a schedule C forever?

I have read of people saying you can use a schedule E if you are no longer writing, but I have also read the opposite saying if you were in a business at the time you wrote the books then it will always be a schedule C.

thanks

[CatinaT1 · Accepted solution]

No, not on a Schedule C. Since she is no longer writing, you will claim the royalties on a Schedule E.

This income goes on Schedule C as long as you are still working as a writer. If you receive royalties at a time when you are not a writer, perhaps in retirement, then these payments are reported on Schedule E.

See this article for further information: Tax Tips for Freelance Writers and Self-Published Authors