If I received royalties as an ebook author (via check) & never got a 1099MISC do I report the gross sales from the online distributor or just the of royalties I was paid?

[sirlou1968]

I started a business as a self-employed author in 2017 and will be filing a Schedule C to claim expenses.

[PatriciaV · Accepted solution]

It depends. Generally, the gross income is earned by the distributor and you are paid a royalty percentage of that income. If that is the case, you should report only the amount that you were paid.

But if the gross sales amount is already your portion of the proceeds, and the amount you received was reduced by fees or commissions, you would report the gross income on Schedule C. Then report the fees/commissions as Business Expenses.