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Snoozie64
New Member

Reporting royalties as hobby income, not self-employment

My 1099-MISC reports $15.01 in Royalties. This is a result of a hobby, not self-employment. We want to report this as other income on line 21/1040. We do not want to trigger a Schedule C; however, Turbotax is not allowing any other option but to upgrade to the program for self-employed individuals. I am not self-employed.
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2 Replies
maglib
Level 10

Reporting royalties as hobby income, not self-employment

Less common income, miscellaneous income and then select hobby income.That will go to  Line 21 of Form 1040  Royalties for HOBBIES DO NOT GET reported on Schedule E.  Possibly C if in business of making a profit.

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Reporting royalties as hobby income, not self-employment

Royalties do not go on a Sch C but should be on a Sch E.   I will show you the Sch E option and line 21 option.

Sch E, go to Wages and Income then scroll down to Rental Properties and Royalties (Sch E) and enter it as a Royalty.

2nd option to enter on line 21.

go to Wages and Income

to bottom to Less Common income

to bottom to Misc income, 1099-A, 1099C

to bottom again to Other reportable income

say "yes" and enter 1099 royalty income and the dollar amount and it will appear on line 21. 

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