You are required to report all your income to the IRS.
Keep reading, please, for complete instructions on how you can proceed.
Royalty income is reported on Schedule E which requires TurboTax Premier (or higher) to prepare.
If you fail to report the 1099-MISC, the IRS will send you an automated Notice of Proposed Increase in Taxes later this year.
They will calculate the tax due (plus interest and penalties) and you can send them a check. No amended return is necessary, so you won't have to upgrade.
The IRS uses this simplified procedure since It is extremely common to omit reporting a Form 1099-MISC. You file before they arrive, they get lost in the mail, get lost in your house or get tossed along with junk mail.