Since you are
only receiving a royalty and not actively involved in a business that would
generate the royalty, then it will be reported in the Rental Properties and
Royalties (Schedule E) section
of TurboTax. Use the following steps to go directly to that section of
your return:
- On the top row of the TurboTax online
screen, click on Search (or for CD/downloaded TurboTax locate the
search box in the upper right corner)
- This opens a box where you can type
in “royalties” (be sure to enter exactly as shown here) and click
the magnifying glass (or for CD/downloaded TurboTax, click Find)
- The search results will give you an
option to “Jump to royalties”
- Click on the blue “Jump to
royalties” link
Skip the first
question or so because they will pertain to rental properties and not
royalties. You will come to a screen titled, “Is This a Rental
Property or Royalty?” where you can choose Royalty. You will
need to enter a short description for the type of royalty and include an
address for the royalty. Use your own address if the royalty is not
associated with an actual property address (such as with a property lease or
mineral rights). Continue moving forward until you get to a summary page
for the royalty. Here you can select Start or Update beside
Royalty Income to enter your income amount.
