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No, the self-employed income and expense royalties are for income made from a business from which a Self-Employment tax is paid and quarterly estimated tax payments need to be made.
The Schedule E Royalty is referring to income made from selling minerals, oil, natural gas, and other natural resources and these are handled as supplemental income.
No, the self-employed income and expense royalties are for income made from a business from which a Self-Employment tax is paid and quarterly estimated tax payments need to be made.
The Schedule E Royalty is referring to income made from selling minerals, oil, natural gas, and other natural resources and these are handled as supplemental income.
If you are in the business of making a profit:
report your income and expenses on Schedule C or Schedule
C-EZ (Form 1040). This can be done using TT Self Employed.
If it is a hobby where you don't intend to make a living then you report the income as hobby income.
· Choose Wages and Income
· Scroll down to Less Common Income and click Start to to right of Miscellaneous Income, 1099-A, 1099-C
· Click Start to right of Hobby income and expenses
· The IRS doesn't allow you to deduct hobby expenses directly from hobby income. Instead, you can deduct expenses as an itemized deduction subject to 2% of your adjusted gross income. Also, the amount that you claim as an expense cannot be greater than your income from the hobby. In other words, your hobby cannot generate a loss.
· Taxpayers can choose to itemize expenses on their tax returns or take the standard allowable deduction. Hobby expenses can only be deducted if you itemize your deductions.
If you don't have any other itemized deductions, TurboTax will deduct the greater of the standard deduction or itemized deductions. TurboTax will choose the one that lowers your overall tax liability.
· If you are in the business, use TT Self Employed and enter as SE income on schedule C or C-EZ by following the interview and reporting as a business.
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