I received $39.51 as royalties for my book. They withheld $11.07 fed. tax. Do I report this as income?

[AamilD]

Yes, you will have to report this income since all income needs to be reported. 

If you receive a 1099-MISC with income in box 2, you should enter it as a royalty. Here is how to do that:

1. Use the search box toward the upper right corner to search for 1099-MISC.
2. Enter your 1099-MISC information. 
3. On the screen titled, Source of 1099-MISC Income, you can select Investment income from property you own, or Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C) If you are no longer in the business of writing, you should pick the first one. This will put the income on Schedule E.

If this is a hobby and not a business, please follow the steps below to report it:

1. Sign into Turbo Tax
2. Click on Federal Taxes tab.
3. Choose Wages and Income.
4. Scroll down to Less Common Income and select Miscellaneous Income, 1099A, 1099-C.look for Hobby Income
5. Click Start to right of Hobby income and expenses.