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pmarkowski
New Member

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

After entering a 1099-MISC, TurboTax requires me to select either (1) “Investment income from property you own”;  (2) “Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C).”  Book royalties would seem to clearly fall under the second choice, but writing just 1 book in my career, over 10yrs ago, would not seem to classify me as “being in business as a self-employed writer” (quoting the IRS guidelines at https://www.irs.gov/businesses/small-businesses-self-employed/what-is-taxable-and-nontaxable-income).  It would seem I need to go the Schedule E route, but Turbo Tax assumes Schedule E is only for rental properties from what I can tell.
8 Replies
AnnetteB6
Expert Alumni

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

Since you are not in the business of writing and you are only receiving a royalty, then it will be reported in the Rental Properties and Royalties section of TurboTax instead of Schedule C.  Use the following steps to go directly to that section of your return:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “royalties” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to royalties
  • Click on the blue “Jump to royalties” link

 

Skip the first question or so because they will pertain to rental properties and not royalties.  You will come to a screen titled, “Is This a Rental Property or Royalty?” where you can choose Royalty.  You will need to enter a short description for the type of royalty and include an address for the royalty.  Use your own address since the royalty is not associated with an actual property address (such as with a property lease or mineral rights).  Continue moving forward until you get to a summary page for the royalty.  Here you can select Start or Update beside Royalty Income to enter the income amount. 

 

 

@pmarkowski

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pmarkowski
New Member

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

Thanks Annette.  Argh.  Unfortunately, this seems to require upgrading from Deluxe to Premier (I cannot even get past the first question without being asked to pay an additional $90).  Seems crazy to need to pay $90 extra just for a single 1099-MISC form that's as simple as the one I have (it's all zeroes except for box 2).  Unless there's another workaround, I'll probably file with some other software this year.  

AnnetteB6
Expert Alumni

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

Unfortunately, there is not a known workaround for getting the information reported on Schedule E where it needs to be.  

 

 

@pmarkowski

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Ed189
Level 1

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

I discovered this today. There is NO workaround. In my case it's oil well royalties on a property I do not own, or a business I do not own or work for. It took 3 assist calls to discover that there is literally NO WAY to add that 1099 to ANY Turbotax product.

 

Turbotax developers need to go back to the drawing board on what should be a very simple entry.

DoninGA
Level 15

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)


@Ed189 wrote:

I discovered this today. There is NO workaround. In my case it's oil well royalties on a property I do not own, or a business I do not own or work for. It took 3 assist calls to discover that there is literally NO WAY to add that 1099 to ANY Turbotax product.

 

Turbotax developers need to go back to the drawing board on what should be a very simple entry.


See this TurboTax support FAQ for entering royalty income reported on a 1099-MISC - https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-1099-misc-for-royalty-inc...

DoninGA
Level 15

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

@Ed189  You report the royalty income on Schedule E even if you do not own the property  Schedule E is used to report both rental or royalty income and expenses.

See the Schedule E instructions - https://www.irs.gov/pub/irs-pdf/i1040se.pdf

Don60
Returning Member

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

I inherited a portion of an oil well that is no longer being worked. However, the company that was working the well issued a 1099-MISC showing I was paid $30.44, representing 4 years of accumulated payments. When I spoke with the company their representative stated this would be the last payment received as they had abandoned the well. It is not a business, nor do I own anything more than a small portion of an oil lease. How do I report the $30 income on the 1099-MISC form?  

JohnW152
Expert Alumni

How do I enter a 1099-MISC for royalties *not* from rental property or self-employment? (one-time book published on the side 10+ yr ago)

With your return open, search for 1099-misc, then select the Jump to 1099-misc link in the search results.

When you enter your 1099-MISC, enter the income in Box 2 - Royalties.

On the following screen, choose Investment income from property you own.  

This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.

Once you've selected the proper classification, follow the onscreen instructions.

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