Royalties were $64; can we not set up Schedule C?

[DianeKM]

We don't have enough income to justify deducting expenses; can we skip ScheduleC?

[DianeW777 · Accepted solution]

Yes.  Royalties are usually reported on Schedule E unless you are actively involved in producing the royalties.  See examples below.

For the current year, because the dollar amount is low and you have no expenses you can choose to report the income as follows:

1. Go to the Wages and Income  section of TurboTax
2. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
3. Select Other reportable Income > Enter a description (Royalty) and the amount

• Investment income from property you own – This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E
• Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C) – This includes income from natural resources that you extract from your property as well as royalty payments from intellectual property you created as an inventor, writer, artist, and so forth. This gets reported on Schedule C.