How do I report 1099 misc income from an inherited royalty that is from music

[tranquility8]

My step father was a musician who played with bands on records and tv shows. I occasionally get a royalty check for a relatively small amount. Turbo Tax gives me a choice of investment income or from my business

[NancyG]

In your case it would be investment income since you did not create the music that generates the royalties, therefore, it is not Schedule C self-employment Income.

How do I enter a 1099-MISC for royalty income?

How do I enter a 1099-MISC for royalty income?

With your return open, search for 1099-MISC or 1099-MISC (lower-case works too) and then click or tap the "Jump to" link in the search results.

When you enter your 1099-MISC, enter the income in Box 2 (royalties). On the following screen, choose the source of your royalty income:

• 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.
• Royalty income from your business, including artist royalties or operating a natural resources business – This includes income from natural resources that you extract from your property as well as royalty payments from intellectual property you created as an inventor, writer, artist, and so forth. This gets reported on Schedule C.

Once you've selected the proper classification, follow the onscreen instructions. You'll be prompted to set up your royalty property in the Rents and Royalties section or the Business Income and Expenses section, depending on which classification it falls into.

Related Information:

• Where do I enter a 1099-MISC?
• What is Schedule E?
• What is Schedule C