I'm entering my book royalty $268 from the 1099-misc that the publisher sent me on schedule E and when I review I get "Check This Entry" Schedule E Worksheet (Untitled): Were 1099s required question must be answered. My options are "no entry", "yes, 1099s

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The question being asked is whether you paid any contractor $600 or more that would require you to issue a 1099-misc to that contractor. This would generally be for services provided by a self employed person or independent contractor, and not for goods or services purchased from a company. If you didn't make any payments of $600 or more to an independent contractor then answer no.

The basic rule is that you must file a 1099-MISC whenever you pay an unincorporated independent contractor-that is, an independent contractor who is a sole proprietor or member of a partnership or LLC-$600 or more in a year for work done in the course of your trade or business. However, that a 1099-MISC need be filed only when an independent contractors services are performed in the course of your trade or business.