If my royalties are on the same 1099-MISC as my compensation, do I list them under the 1099 section or the royalties section. Entering the 1099-MISC is a problem...

kep121 · ‎June 3, 2019

I have one 1099-MISC, with Royalties and Compensation listed. When I put the royalties in that section, I have to break the 1099-MISC into two bits, otherwise it counts everything twice. How do I fix this?

MichaelMc · ‎June 3, 2019

I would enter that as if you had received two separate Forms 1099-MISC. If the royalties are for intellectual property you created as part of your compensated work, they are going to find their way back to your Schedule C, anyway. But if you do not break-out the reporting of the two income streams, I fear the IRS will have trouble matching the reported amounts from the Form 1099-MISC to your tax return, resulting in a notice requiring you to provide an in-depth explanation.

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MichaelMc · ‎June 3, 2019

I would enter that as if you had received two separate Forms 1099-MISC. If the royalties are for intellectual property you created as part of your compensated work, they are going to find their way back to your Schedule C, anyway. But if you do not break-out the reporting of the two income streams, I fear the IRS will have trouble matching the reported amounts from the Form 1099-MISC to your tax return, resulting in a notice requiring you to provide an in-depth explanation.

If my royalties are on the same 1099-MISC as my compensation, do I list them under the 1099 section or the royalties section. Entering the 1099-MISC is a problem...